In investment, a common problem is stop profit and stop loss, especially in the stock market, which is often encountered. So how to take profit and stop loss? Dana will share his views here, hoping to be helpful to those who are destined to do so.
The first is to take profit. Many people will encounter a situation in the stock market, that is, they finally bought a good stock, but ended up selling it early, and then told others how they bought a good stock, but they didn't hold on to it, etc. , what Dana wants to say is, what is a real investor? One of the very important factors is that when you buy a good target, you can have the patience to hold it and allow it to go through a long period of washing and pulling up. In the early stage, following the dealer in distributing chips during the climax of the promotion, and then leaving no trace of nostalgia, this is the real master.
The process of rising stocks is accompanied by constant washouts. In fact, this is easy to understand, because everyone’s mentality is to chase the rise and kill the fall, and they are more worried about the fall when it falls. , and if it finally rises sharply, it will start to worry about gains and losses, and worry that the hard-earned benefits will be in vain, and it will be sold hastily. You have to know that it is not easy to buy a good stock at all, so after you choose a stock, all that is left is to give it time. What I want to emphasize here is that you have to spend most of your time , spend your time choosing stocks, instead of just making a decision by patting your head. After you have bought the stock, you will be hesitant in the daily rise and fall. Only if you have a deep understanding of this stock can you have the confidence to make profits. If you start running, Dana will also explain in depth how to analyze a listed company in future articles.
In addition to stop-profit, another headache is stop-loss. The word stop loss seems very interesting. It seems to let you stop the loss. In fact, when you make the stop loss, you have already lost money. It is just that you have avoided the possible greater losses in the future. , the most common situation encountered in reality is not to stop the loss, but to cut the flesh, that is, the stock has fallen a lot, and it has broken even more. At this time, I comfort myself with the stop loss. In fact, it has not been long before the flesh is cut. Then I encountered another backlash, and I started telling others how I was cutting my meat at the floor price, as if I was "slapping someone on the thigh".
What I want to say here is that the most basic situation of stop loss is that in addition to stock price fluctuations, there are also problems with the company's operations. If there is a problem with the company's operations, or similar major shareholders start to reduce their profits. If you hold it, then you need to comprehensively judge whether this company still has prospects in the future. Dana's view has always been that you should not stop losses just for the sake of stopping losses. That is, do not use stop losses as an excuse for frequent trading. Buy a stock and put it aside. If it doesn’t rise for two or three days, sell it, wait another two or three days, etc. Only when you comprehensively analyze the company’s development prospects and industry prospects and find that the company’s investment value is declining is the reason to stop losses. Dana will also follow up. Explained in detail in the article.
In general, stop-profit and stop-loss are very important to investors. As you continue to summarize during the investment process, you will find that the process of taking profits and stopping losses is the process of defeating human nature. This is the most important thing that brings you besides investment income.
——The above, financial king Dana, more investment thoughts and logical analysis, so stay tuned!