What is Stop Loss and What is Take Profit?

1. Stop loss refers to when the loss of an investment reaches a predetermined amount, the position will be cut out in time to avoid greater losses. The aim is to minimize losses in the event of an investment error. An important difference between investing and gambling is that the former can limit losses within a certain range through stop-loss, while at the same time maximizing the return on success, in other words, stop-loss makes it possible to win greater profits at a smaller cost.

2. Stop-profit stop profit, also known as stop-profit and stop-profit. - It is to place a pending order at your target price, and stop loss is to place a pending order at the price you can afford to lose. The concept of take profit is to close when you see a good thing, not to make the highest profit.

The center of thought is in a "stop", thought determines action, and the method of ** is essentially different.

The biggest enemy is not the market, but human nature, and the most feared is greed. Many people lose money because of greed. If you want to make money, the first thing you have to do is take profit and stop loss. So what does take-profit and stop-loss mean? How to set take-profit and stop-loss?

1. What does take-profit and stop-loss mean?

Stop-loss means that when the stock price falls to the lowest price you can bear, you will sell it categorically, that is, stop the loss. No matter how much it falls in the future, you will lose this point.

Take profit is how much you plan to make a profit, such as % or 30%, sell when the stock price rises to this point, and it doesn't matter how much it rises in the future.

2. How to set the take-profit and stop-loss?

Set Take Profit Points:

1. Set the ratio: Suppose you buy ** for 10 yuan, and then it ** to 12 yuan, you can set ** out of the position when **10% position. That is, if **from 12 yuan** to yuan, once ** is in place, it will come out.

If there is no ** in place, keep holding it, and then, steadily correct the take profit point (must strictly abide by it) to maximize your profits.

2. Set the price: for example, 10 yuan to buy, and then it ** to 12 yuan, set if it falls below 11 yuan to the position, if it does not fall to this price but continues to ** to 13 yuan, then, set if it falls below 12 yuan to the position, so that through the price set step by step to raise the standard, lock their profits, and will not regret the position in advance.

3. Set the take-profit point according to the time, that is, when the time reaches a certain key point, it is suspected that a ** cycle is completed in time.

Set a stop loss:

1. When the stock price falls by a certain percentage. For example, if the decline reaches 10 to 15%, the position will be cut, and the size of the proportion needs to be determined according to the market conditions and your own psychological tolerance.

2. When the stock price falls below a certain price, for example, the stock falls below 8 yuan, stop the loss.

3. Time stop loss. For example, when ** reaches a certain point in time (sensitive point, incident point), no matter where ** is, the position will be released.

Stop loss is to sell when you buy a certain ** or ** loss, which is called stop loss. Whereas, take profit is to sell if you make a profit. It can be understood as the termination of loss and termination of profit.

If the direction is reversed, in order to avoid the expansion of losses, close the position in time and call stop loss. If the direction is right, there is already a profit, and the bag is called take profit.

Forex Noun World Issue 04: Take Profit and Stop Loss.

1.Stop loss is to sell categorically when the **** falls to the lowest price you can bear, that is, to stop the loss. No matter how much it falls in the future, you will lose this point.

2.Take profit is how much you plan to make a profit, such as % or 30%, and sell it when the **** rises to this point, and it doesn't matter how much it rises in the future.

In the field of international investment, the setting of stop-loss and take-profit is the basic operating rule, and if the raft can be used reasonably, it can greatly reduce the transaction risk of investors and protect the profits.

The setting of take-profit and stop-loss points is also very crucial.

If the take profit is set low, the profit will be less, the take profit will be set high, the order will not go up, the order can not be automatically closed, if the profit is reversed, the profit will be turned into a loss immediately.

A stop loss is a stop loss. For example, when an investor buys a **, **** causes a certain loss, in order to prevent the loss from continuing, the investor can choose to sell **, which is the stop loss. In the same way, take profit is to stop profit and sell the already profitable **.

However, in real investment, it is not so easy to achieve stop loss and take profit, and the main reason is that people's execution is not enough. For example, the average investor can set a more reliable stop-loss point for himself, such as losing 10% and leaving the market, but when he really encounters a **10% situation, he will think about whether it will be ** tomorrow? So a reliable premise was scrapped.

Therefore, the reality is that when the stop loss point is reached, few people will face the possibility of losing money and cutting meat and operate calmly. Of course, the same is true for take profit. If you can't pass the execution level, no matter how reliable the stop-loss point is, I'm afraid it is of little significance.

Therefore, if there are problems in stop loss and take profit, you must first reflect on your investment psychology and strengthen your execution.

It's just that if it's not good, you have to sell it if you lose money, and if you make a profit, you can sell it.