What are some practical stop loss options?

We know that when we are selecting stocks, we will also make a specific analysis based on the overall situation in the early stage. For example, the fundamental state of the market, the economic development of enterprises, etc., are all good side information. However, we must also clearly understand that there is a certain risk in the market, even if the channel or investor has made a specific analysis in the early stage, the follow-up cannot guarantee that it must be the first.

Therefore, in this situation, it is time to touch the stop loss that we are going to introduce today. So, channels, what are the useful stop-loss plans?

Pay attention to the good mindset.

In fact, when it comes to the stop-loss plan, the details of all aspects are very critical, first of all, the investor's own mentality, and from the other aspect, it can also be the investor's own risk tolerance. Therefore, at the time of early investment, it is necessary to make relevant estimates, and set a stop loss direction, such as so with **, share and **, etc., which are some tips for stop loss.

Learn the stop-loss technique at all times.

In addition to the mentality we are talking about, there are actually some other useful stop-loss techniques. The so-called time stop loss is also to avoid risks, for example, we can first set a price target value and time at the time of **, and after this moment, there has been no **to such **, then we can choose to throw. For the overall data setting, the same needs to be analyzed according to the stock selection and the operation of the investor itself.

The above are some of the stop-loss plans we have introduced, and we hope that they can help us in practical operations.

Stop-loss is not difficult, but timely and flexible stop-loss is difficult, because there is a lot of skill or judgment involved. There is no shortcut to success, you can only practice more yourself, but there are some principles you should follow while practicing:

Stop-losses that are set too wide or too tight will not be effective. If the stop loss is set too wide, the magnitude of the loss will increase; If the stop loss is set too tightly, it won't be able to leave enough room to breathe until it moves in the direction you envision.

The stop-loss setting should follow a general principle in general with the market movement: when the market is volatile, the amplitude of the stop-loss point should be increased; Conversely, when the market is less volatile, the amplitude of the stop loss can be reduced accordingly.

Confirming the trend with three or two moving flats** and using support and resistance lines to set stop losses is the most common method used by many investors, and noticing the nearby support and resistance levels does help us a lot to set stop losses.

But sometimes the market just probes the support or resistance line, and you are probed. The best course of action should be: if you go long, look at where the support level is near your entry position and set the stop loss below the support line.

If you are going short, you should look for resistance near the entry level and set your stop loss above the resistance line. This way you may be more sure that the support and resistance levels have been broken and then revisit your trading strategy.

3. Follow up on your stop loss and don't exceed your upper limit of losses

4. Don't let emotions dictate your stop loss

In the market, there is no room for chance. "Stop loss" is more like a sharp blade that cuts through carrion, which makes you bloody and guaranteed to keep you alive. In the face of losses, it allows you to turn reactive into proactive and look for new opportunities to make profits.

It depends on the situation of the situation to make a plan!

1. Indicator stop-loss method As the name suggests, this stop-loss method is a stop-loss based on indicators. Many of the indicators used in trading are intraday indices in the market, such as new highs, new lows, and volume. When creating an indicator-based stop loss, if ** breaks through a new high or falls to a new low (if at its new high, you are shorting; or a new low, you are long), then you need to exit the trade, even if the ** at this time has not yet reached the stop loss level you set.

2. Time stop loss The time-based stop loss strategy refers to the fact that when the momentum rises in the desired direction, make a trade. If the direction is correct, then you should be able to take profit soon. On the contrary, if after going long, **is still not**, or even there is a slight **situation, it means that the interpretation of **direction is wrong, and the assumption at this time is falsified.

3. Stop loss Most traders are familiar with the stop-loss strategy based on the loss because it is the most obvious indicator that allows investors to feel the loss they face directly. When time and indicators are unable to exit a trade, a stop-loss based on ** is used as a last resort. The key to making this stop-loss-based operation is to set your stop-loss near the hypothetical high or low, so that even if your assumptions are falsified, the loss will not be too large.

In trading, this means that traders check the one-minute and five-minute charts, as well as consider the market maker's to buy and sell. Fourth, the capital stop loss of funds is the stop loss when the invested funds are lost to a certain amount or ratio. The advantage of this stop-loss method is that it is relatively rational, which can avoid large capital losses, and at the same time, it can also give yourself a psychological expectation of loss, and you will be more calm and calm in trading. Comments.

In personal experience, the common method of stop-loss is to immediately stop all existing economic movements, or redeem all the previous funds.