What is a protective stop loss 5 and what is a protective stop loss

Updated on Financial 2024-06-26
23 answers
  1. Anonymous users2024-02-12

    A protective stop-loss is a way to immediately hedge a previously traded trade that caused the loss when the loss reaches a certain level, so as to limit the loss to a certain range.

    Protective stop-loss measures are the most important risk control countermeasures for investment, and their significance and role are mainly manifested in the following three aspects:

    1.Protective stop-loss is needed to stay afloat in the market. The market risk faced by investment activities will always exist, losses may occur in any investment activities, the manager's investment decisions cannot always be correct, no matter how scientific the manager's method in investment decisions, how skillful, and how accurate the analysis is, they may suffer losses, and protective stop-loss measures provide an effective way to limit losses in a risky market.

    2.A protective stop loss is needed to maintain the return on your investment. When the actual operation is the opposite, the holding stop can ensure that the market is exited within a reasonable range of losses.

    On the other hand, if the manager makes the right decision, the market runs in the direction of its direction and generates profits, the manager should carry out the promotion of the stop loss, that is, the original set stop loss price is corrected, and the stop loss point will be pushed forward with the direction of the market movement, rather than always maintaining the original stop loss point. This ensures that once the market reverses, the book profit that has been obtained will not be converted into a loss, so that the original profit is maintained. Therefore, among all investment risk countermeasures, protective stop-loss measures have become the most direct and effective means.

    3.Protective stop loss is beneficial to overcome the psychological weakness of the manager in the face of losses. In the face of paper losses resulting from mistakes, managers may develop significant psychological weaknesses, which manifest themselves in:

    First, managers are often unwilling to face the fact of paper losses and refuse to admit defeat; Second, the manager often has unrealistic illusions about the market, believing that his investment decisions are also correct, and the market will soon change the original trend to recover his losses; Third, sometimes the ** manager even has the wrong idea of "if you don't sell, you won't lose", thinking that as long as you don't close the position, there is still hope of turning over, so you "willingly" take the initiative to trap it. These psychological weaknesses are prevalent among investors, making most investors losers in the market. The implementation of protective stop-loss measures is conducive to the ** manager to overcome the above-mentioned psychological weaknesses and avoid the expansion of losses.

  2. Anonymous users2024-02-11

    Lock in profits first, that is, if you don't lose money, you should also come out for a period of time depending on the situation.

  3. Anonymous users2024-02-10

    Dude,,According to 2 percent,It's the yuan,,That is, if it falls, you will stop the loss and sell.,Hehe, buddy.,I'm responsible for the mistake.。

  4. Anonymous users2024-02-09

    A conservative stop loss with half of the stop loss below the cost price.

  5. Anonymous users2024-02-08

    Set it yourself***. Lose less.

  6. Anonymous users2024-02-07

    The necessity of a stop loss.

    There is never any certainty in trading. All analysis** is only a possibility, and the trades made according to this possibility are naturally uncertain. Uncertain behavior must have measures to control its risk, and the extended stop loss is thus created.

    Stop-loss is more important than profit-taking, because capital preservation comes first at all times. The core of a prudent stop-loss principle is to not allow losses to continue to grow. Why is it so hard to stop loss?

    There are three reasons: one is to worship the psychology of luck, the second is that frequent fluctuations will make investors hesitate, and the third is that the execution of stop loss is a painful thing, which is a challenge and test of human weakness.

  7. Anonymous users2024-02-06

    Stop-loss is.

    Cutting meat, literally, is very easy to understand, termination loss, is when you buy five or ten percent of the **** (you set the ***), immediately throw, in order to avoid the stock price continues to bring greater losses.

    This *** is usually set at about 10%, how to set it is very critical, and you need your own long-term experience to make adjustments.

  8. Anonymous users2024-02-05

    Stop possible bigger losses in the future, reduce losses, and balance the mindset.

  9. Anonymous users2024-02-04

    Stop-loss refers to the process of setting the exit point when a loss occurs in advance in a transaction, effectively controlling the risk and preventing greater losses in the future. The significance is that it is possible to seek higher profits with minimal losses.

  10. Anonymous users2024-02-03

    The meaning of a novice stop loss is to let yourself live longer and have a chance to grow into an old bird ......Let some people get rich first, and then eliminate all those who can't get rich, and finally achieve common prosperity.

  11. Anonymous users2024-02-02

    Maintenance stop-loss means that when the loss reaches a certain level, the capital contribution that forms the loss is immediately cut off in order to limit the loss to a certain size. Maintenance stop-loss is a kind of risk manipulation behavior to stop risk, and the investor generally aims to maintain the principal and provide financial guarantee for future capital contributions.

    Maintenance stop-loss is the most direct and useful stop-loss method, which helps investors overcome their shortcomings.

    These shortcomings include: unwillingness to face the reality of paper loss; Having unrealistic dreams about the market, taking Changna as the market will soon change the original trend and then recover losses; Unwilling to admit defeat, with the emotion of not making money or selling, he was automatically locked without reluctance. These shortcomings are prevalent among funders, making most funders losers in the market.

    Case in point: Jidong Cement.

    Maintenance stop-loss settings.

    Reason for investment: The macro economy is still not significantly improving, the main trend of ** is still attributed to the downward trend, and the secondary trend is sideways. **On the skill side, MA120, MA60 and MA30 are all bullish at the bottom, while MA10 is in sideways vibration, and the stock price is supported by the semi-annual MA120 and the bottom support line.

    The single-phase stock price touched MA120, which was strongly supported by the line and the support line, and showed a piercing shape, so the capital contribution cycle was confirmed to be medium**.

    From the profiling of skills, there is a reason to be in this position** the stock.

    Investment Period:**.

    Total**Specific gravity: 20.

    First of all, analyze things: skill analysis, based on MA120** (semi-annual line), ** shape, support line and pressure line.

    **Cost: Yuan.

    Potential risks: The first trend of ** and ** is a downward trend, and whether the trend can continue to end the shape of the relay triangle is still uncertain, and there is a possibility of a direct downward break and a halfway change.

    Stop-loss plan: If the stock price shows expectations**, after exceeding the capital price, the principal is selected to maintain the stop loss, plus 3 fees, that is, yuan; If it is contrary to expectations, the stock price will fall below the half-year line and the support line to stop the loss point. In this way, we can contribute according to the above operation plan.

    Assuming that you do not sell ** at the take-profit point, then the stock price will go down after being limited by the pressure line, and eventually fall below the MA120 and the support line, and the stock price corresponding to this point is the yuan. The stop-loss points together meet the stop-loss plan, and the stop-loss is resolutely carried out according to the needs in the operation. However, the stronger investors generally do not wait until this moment to implement the stop loss, the reason is that the first is in the bear market at that time, the operational thinking is completely different from the bull market, and the surplus should be closed when it is good.

    The stock can ** to the upper edge of the resistance line of the triangle consolidation, which is now good.

    The timing when the stock price reaches the take-profit point can be said to be fleeting.

  12. Anonymous users2024-02-01

    Pure protective stop loss means that when the loss reaches a certain level, the investment that caused the loss will be immediately terminated, so as to limit the loss within a certain range.

  13. Anonymous users2024-01-31

    The real meaning of stop loss is to control losses, and many investors ignore stop loss as a tool to make themselves lose money.

    In the trading market, any professional analyst may have a time when he or she makes mistakes, because man is not a god after all, and it is impossible to be 100% accurate about the future. Therefore, once you find that the direction is wrong, then you should close the original wrong order in time, although this is a loss, but at least it will not continue to lose, and finally lead to a large loss.

    The general method of setting a stop loss.

    1.Fixed stop-loss method. This is the simplest method of stop-loss, which means setting the loss amount to a fixed percentage and closing the position as soon as the loss is greater than that percentage.

    It is generally applicable to two types of investors: "one is investors who have just entered the market; The second is investors in risky markets (such as ** markets).

    2.Technical stop-loss method. Combining stop-loss setting with technical analysis makes it easy to set stop-loss orders at key technical levels after removing random fluctuations in the market, so as to avoid further losses.

    Generally speaking, using the technical stop-loss method, there is no way to bet on a small loss and a big profit. Through the analysis of the ** operation pattern, once the exchange rate is found to be broken, the stop loss will be resolutely stopped.

    In addition, it should be emphasized that the following factors should be paid attention to when setting the stop loss level:

    1.It is necessary to focus on the general trend and look for new highs (new lows) in the past major thresholds or new highs (new lows) in the past on the technical chart, or the market has more than once "confirmed" that it is difficult to break through;

    2.The main analysis levels in technical analysis, technical indicator levels are usually used by professional traders and professional ** hands, and these prices also need to be paid attention to;

    3.or the price point that the central bank has emphasized;

    4.The most important point is to continuously summarize and accumulate from daily operations, and find a stop-loss method that suits your own situation is the key.

    As investors, we are faced with a huge capital market that is not transferred by our will, and the turbulence in the financial market not only has huge potential for profit, but also has the risk of losing your money. To be clear, there will always be opportunities in this market, but once you lose all your money, you will lose the ability to look for opportunities again, so it is not only necessary but important to set a stop loss in order to avoid risk.

  14. Anonymous users2024-01-30

    This concept is generally to only invest in the future and lose money, in order to prevent greater losses, come out in time. For example, this ** ticket has been falling, and if you are afraid that it will continue to fall, hurry up and get out of the warehouse. Because if you don't come out, if you continue to fall, the loss will be greater, and doing so is a stop loss.

  15. Anonymous users2024-01-29

    The concept of stop loss should be: if there is a loss before, avoid losing too much, stop this immediately, so as not to lose it.

  16. Anonymous users2024-01-28

    Stop loss, also known as "cutting meat", refers to when the loss of a certain investment reaches a predetermined amount, the position is cut out in time to avoid forming a larger loss.

  17. Anonymous users2024-01-27

    Stop loss is to take measures to stop the loss immediately after discovering it, which is called stop loss.

  18. Anonymous users2024-01-26

    Stop-loss means doing your best to minimize your losses.

  19. Anonymous users2024-01-25

    Proficient in technical analysis is based on the confirmation of the timing of the sell signal.

  20. Anonymous users2024-01-24

    Stop-loss overview? What is a stop loss? What does stop loss mean?

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

    The fact that there is a lot of blood shows that one accidental investment mistake can be fatal, but a stop loss can help investors save the day.

    Stop loss is not only a concept, but also a plan, but also an operation. The concept of stop loss means that investors must understand the importance of stop loss in investment from a strategic height, because in the high risk of high risk, the first thing is to survive, before we can talk about further development, the key role of stop loss is to allow investors to survive better. It can be said that stop-loss is one of the most crucial concepts in investing.

    The most important step in the stop-loss plan is to decide on a specific plan based on various factors (such as important technical levels, or capital conditions, etc.) before an important investment decision is implemented. Stop-loss operation is the implementation of the stop-loss plan, is a step of great significance in the investment, if the stop-loss plan can not be turned into a real stop-loss operation, the stop-loss is still only on paper.

  21. Anonymous users2024-01-23

    Just like the ** ticket, there is the happiness of making money, the mentality of losing money, and the stop loss is what stage you can withstand at which stage of losing money, so as not to let yourself passively lose money.

  22. Anonymous users2024-01-22

    Timely stop loss means taking timely measures to avoid forming larger losses.

    Timely stop loss refers to the timely liquidation of a certain investment when the loss reaches a predetermined amount to avoid a larger loss. The aim is to minimize losses in the event of an investment error.

    The use of timely stop loss:The term stop-loss is very broad, and can be widely used in life, feelings, work and dealing with friendships. The term timely stop loss is generally used by economists in economics, and it is generally used to fluctuate greatly in the economy, and then use the word timely stop loss to express the wait-and-see view of the economy.

  23. Anonymous users2024-01-21

    Stop loss means selling at a certain loss.

    Control the magnitude of losses, such as trading, you can use the system as a stop-loss price, such as the stock price falls below 5 days for stop loss, the stock price falls below 10 days for stop loss, etc., you can also set the stop loss price according to the personal loss situation, for example, investors can bear a maximum loss of 5%, then the loss of 5% will be carried out when the stop loss is carried out.

    When the market is better, even if the stock price is temporary, it will rise in the future, and when it is not good, it will be more difficult for the stock price to go back.

    The meaning of **.

    **It is a value issued by a joint-stock company to investors to prove their shareholder rights in the company and the amount of shares invested, and to obtain dividend income**. From this definition, it can be seen that Zheng Dou has three basic elements: the issuing entity, the shares, and the holders. **As a certificate of ownership, it has a certain grid macro grinding style.

    The significance of ** is to allow enterprises to obtain capital more quickly, so that investors can enjoy the benefits of enterprise development more conveniently, so that resources can be allocated more efficiently, and the society can achieve faster development, understanding that these will not make your investment income increase much immediately.

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