Principle of stop loss:
Do not set the stop loss. In the long market in China such a cow short bizzigh, there is no stop loss measures, and a larger adjustment can make you lose. So investors buy the first thing to buy stocks, not to see where it will rise, but see where it will fall, set the stop loss, not only the stocks you think ten Ten Tats. Because the securities market is risky, main agencies have no time. Setting the stop loss, that is, the worst plan, in case risk, the stop loss can help us control the loss within the range of tolerance, reduce the loss, not to defeat.
The stop loss plan must be strictly enforced. This truth is understanding, but it is quite difficult to implement it. An example of re-rising after selling will make your implementation hesitate. The best way to strictly implement the plan is that often memories have had the biggest mistakes. Painful memories of failure cases will firmly implement the determination of the plan. The freedom of the securities market is that no one will lead you, interfere with you, but there is no constraint, it is also a place where you have a mistake. Investors' constraints, more importance exceed all technologies. This truth, the earliest people in the market, the deeper the world.
Stop loss flexibility:
Is there a stop loss that is universally acceptable? Although all kinds of books have introduced many methods, the actual effect is not satisfactory. The key is to use different ways of operation, dealing with different markets, in different profit and loss conditions, using flexible, different stops.
Use different ways of operation. Super short-rays are much more accumulated, because one operation is not high, the setting of the stop loss is quite strict. If the average income of your operation is 3%, then the maximum level of loss is 3%, otherwise the rate of funds will definitely be faster than the growth rate. The key to short-term operations is to find the lead shares of the hot plate, which will be profitable in the short term. Based on the research on the callback amplitude of the leadload, the high position can generally fall from 6-10% as the stop loss. More than this amplitude, indicating that the nature of the market may have changed, and it will be avoided. It is a longer share of the midline, and the volatility of the stock price is larger, and the high position can fall by 15% as a stop loss.
Coping to different markets. Basically, in the strong market, the stop loss position should be relatively narrow, the upper limit; the balance market, the implementation of the limit; the weak market, the lower limit is performed. For example, a short-term, in the range of 6-10%, 6% of the strong market as a stop loss. Because of the strong market in strong market, in particular the leadload of the hot plate, more than 6% of the callback, more than 6% of the difference, not as good as the fighter. In the balanced market, 8% is selected as the stop loss. In the weak market, 10% is selected as the stop loss. Weak markets generally should not buy stocks, but when there is a significant hot spot in the weak market, it can also be involved. Due to the weak market, the amplitude of the callback callback will be large, the stop loss is too narrow, which may result in frequent stop loss.
In different profits and losses. The purpose of the stop loss is to reduce the loss and keep the profit. Therefore, the setting of the stop loss position must be reasonably adjusted around the market price and profit. If you plan your hands on the same day, you can decline the cost price as a stop loss. If you are in a profitable state, immediately increase the stop loss, how much the highest price in the same day is a stop loss. In the future, with the rise of the stock price, gradually increase the stop loss price. In this way, it can guarantee the least loss, the profit is maximized, and the situation in the securities market is step by step to "win".
