What Is a Stop Price?

Stop loss is also called "cut meat", which means that when a certain investment's loss reaches a predetermined amount, the position is cut out in time to avoid a larger loss. The purpose is to limit losses to a smaller range when investment errors occur. An important difference between stock investment and gambling is that the former can limit losses to a certain range through stop loss, and at the same time can maximize the success of the reward, in other words, stop loss makes it possible to obtain greater benefits at a lower cost. may. Countless blood facts in the stock market indicate that an accidental investment error is fatal, but stop loss can help investors to save the day.

Stop loss

(Investment term)

Chinese name: Stop loss
Foreign name: Stop loss

Category: Investment term
nickname: Cut meat

Regarding the importance of stop loss, professionals often use the crocodile law to illustrate. The original meaning of the crocodile law is: suppose a crocodile bites your feet. If you try to break your feet with your hands, the crocodile will bite your feet and hands at the same time. The more you struggle, the more you get bitten. So in case the crocodile bites your foot, your only chance is to sacrifice one foot. In the stock market, the crocodile law is: When you find that your transaction deviates from the market direction, you must stop the loss immediately without any delay and no luck. Crocodile eating people sounds too cruel, but the stock market is actually a cruel place, every day people are engulfed in it or disappear utterly ^[1]

(1) Stop loss points must be set

Never start a trade without setting a stop loss. There is no stock that only earns no loss, and investment in the stock market must always raise awareness of risk. The minimum risk awareness is to determine how much you can lose before buying-setting

Combined stop loss

Investors no longer focus on stop loss on a single fund product, but instead construct a radical, robust and conservative fund portfolio style conversion. If investors' risk tolerance changes, they should not be confined to the original fund product portfolio, and should be actively adjusted.

2. Variety stop loss:

Money market funds do not say that they are based on liquidity management of funds. Once held for three years, there is a third-party agency to guarantee, do not worry too much.

Stop loss of stock fund products should grasp the changes in the economic cycle. Only in the period of high economic growth, stop loss will play a role of risk aversion. The stop loss of bond fund products should take into account changes in monetary policy.

3. Stop loss in operating mode. Mainly, investors can avoid the risk of concentrated investment in fund products by making up positions in outstanding fund products or by optimizing the structure of fund product portfolios.

4. Mechanism stop loss. That is to say, we should use the financial thinking of "don't put eggs in the same basket" to reallocate household assets between bank deposits, insurance and capital markets.

5. Idea stop loss. Investors should adhere to long-term investment, value investment, diversified investment and rational investment in the investment process of specific fund products. Stop the loss by changing the habits of frequent fund operations and adhering to the correct philosophy of holding funds.

It is normal for stocks to make losses due to misjudgments. The key is to find out the reasons and lessons after mistakes and losses, and to avoid making the same mistakes again. Comparatively speaking, preventing high trapping in advance is better than exhausting the brain afterwards.

Volatility and unpredictability are the most fundamental characteristics of the market. This is the basis for the existence of the market and the cause of risk in transactions. This is an immutable feature. There is never certainty in trading. All analysis and prediction are just a possibility. Transactions based on this possibility are naturally uncertain. Uncertain behavior must have measures to control the expansion of its risks and stop losses. That's how it happened.

Stop loss is naturally generated by human beings during the trading process. It is not deliberately made. It is an instinct for investors to protect themselves. The uncertainty of the market has created the necessity and importance of stop loss. Successful investors may have different trading methods, but stop loss is a common feature that guarantees their success. Soros, the world investment master, said that there is no risk in investment itself, and that there is risk in out-of-control investment. Learn to stop losses and never fall in love with losses. Stop loss is far more important than profit, because at any time the principal is guaranteed, and profit is second. The establishment of a reasonable stop loss principle is quite effective. The core of the prudent stop loss principle is not to allow the loss to continue to expand.

It is important to understand the meaning of stop loss, however, this is not the end result. In fact, there are many examples of investors setting stop losses without executing them. In the market, the tragedy of being swept out is happening almost every day. Why is stop loss so difficult? There are three reasons: one is the fluke mentality. Although some investors also know that the trend has broken, but because they are too hesitant, they always want to take a look and wait for a while, causing themselves to miss the great opportunity to stop loss. Second, frequent price fluctuations will make investors hesitate Indetermination, the often wrong stop loss will leave investors a lingering memory, which will shake the investor's determination to stop loss next time. Third, implementing stop loss is a painful thing and a bloody The process is a challenge and test to the weakness of human nature.

In fact, we cannot determine whether it is the correct state or the wrong state for each transaction. Even if we make a profit, it is difficult for us to decide whether to play immediately or to wait and see, let alone in a quilt state. The instinct of human pursuit of greed will make every investor unwilling to win a few points less, and less willing to lose a few points.

It is precisely because of the above reasons that when the price reaches the stop loss level, some investors miss their positions, suffer losses, and the stop loss position changes over and over again; some investors temporarily change their positions, increase their positions against the trend, and try to make a desperate attempt to recover losses; Some investors have simply adopted the "ostrich" policy after the losses have expanded and left it alone. In order to avoid these phenomena, the author thought that a programmatic stop loss strategy could be adopted.

Big international

Stop loss is an important means of protecting yourself in stock trading. Just like the brake device in a car, it is good at "braking" in case of sudden conditions to ensure safety. The ultimate goal of stop-loss is to preserve strength, improve capital utilization and efficiency, and avoid small mistakes from making big mistakes and even lead to the annihilation of the entire army. Stop loss cannot avoid risks, but it can avoid greater unexpected risks. How to set the stop loss level? There are the following methods for reference:

Balance point stop loss method: After the position is opened, the original stop loss level is set. The original stop loss level can be set at a position of 5% -8% from the position opening price. After the buy, the stock price rises, and the stop loss is shifted to the open position price. This is your break-even point position, that is, the stop loss level. Based on this, investors can effectively build a "zero-risk" system that can cash out some or all of their profits at any time. After the balance point stop loss system is established, the next purpose is to cash out and close positions. Cashing out and closing a position is very technical, but no matter what closing technique is used, as the stock price rises, the stop loss position must be adjusted accordingly. For example, if an investor buys at 10 yuan, the original stop loss level is set at 9.2 yuan. If the stock price drops all the way after the purchase, the stop loss can be played at 9.2 yuan. If the stock drops below, you can clear the position and exit; if the price continues to rise after the purchase, you can adjust the stop loss level immediately. If the stock price rises to 12 yuan, the stop loss can be adjusted to 11 yuan, the price rises to 13 yuan, and the stop loss also "rises" to 12 yuan.

Time stop loss method: People generally pay attention to the stop loss of space, without considering the time factor. As long as the price drops to a certain pre-set price, the position is closed out, which is the space stop loss. The advantage of the space stop loss method is that you can wait for the big market by sacrificing time. The disadvantage is that after a long wait, you often have to stop loss, which delays time and loses money. For this reason, the concept of time stop loss needs to be introduced. Time Stop Loss is a stop-loss technology designed based on the trading cycle. For example, if we estimate the trading cycle of a stock to be 5 days, after buying, it will hover over the line of the buying price for more than 5 days. warehouse. From the perspective of the spatial stop loss, the price may not have reached the stop loss position, but the holding time has crossed the time limit. In order not to expand the loss of time, you may wish to get out first.

Technical stop loss method: Setting stop loss orders at key technical levels can avoid further expansion of losses. There is no fixed pattern for the technical stop loss method. Generally speaking, the use of technical stop loss method is nothing more than betting on big profits with small losses. Its main indicators are: 1. The important moving average is broken; 2. The tangent of the trend line is broken; 3. The neckline of the head shape such as head and shoulders, double top or arc top is broken; 4 1. The lower rail of the rising channel is broken; 5. The vicinity of the gap is broken. For example, after buying in the lower rail of the uptrend channel, wait for the end of the uptrend to close the position and set the stop loss level near an important moving line. As another example, after the market enters the consolidation phase, a converging triangle usually appears, and the deviation rate between the price and the medium-term moving average (usually 10-20 antennas) gradually decreases. Once the deviation of the price from the medium-term moving average is re-amplified, it means that the game has ended. If the price turns into a downtrend at this time, it should decisively leave the market.

In the big picture, there are two methods of stop loss. The first type is the regular stop loss, that is, when the reasons and conditions for buying or holding disappear, then even if you are in a loss state, you must immediately sell. The regular stop loss method is completely based on the reasons and conditions of the original purchase. Because the reasons and conditions for each purchase are very different, the regular stop loss method cannot be generalized. For example, assuming that the original buy and hold conditions were that the 5th, 10th, and 30th moving averages were rising, then if one of the moving averages crosses another moving average and the rising ranking is damaged, you should immediately sell. As another example, suppose that the original reason for buying was that a favorable asset reorganization is expected to occur in the listed company. If it proves that the reorganization fails, it should be sold immediately. The second type is auxiliary stop loss. The methods here are varied, and are also a topic that many people often like to talk about. Let's use a certain space to introduce the common auxiliary stop loss methods as comprehensively as possible.

Maximum loss method

This is the easiest way to stop loss, and stop the loss when the floating loss of the individual stocks reaches a certain percentage. This percentage depends on your risk appetite, trading strategy, and operating cycle. For example, the short-term (T + 1) can be 1.5 to 3%, the short-term (about 5 days) can be 3 to 5%, and the medium-long-term can be. It is 5 to 10%. Once this percentage is set, it cannot be easily changed and must be resolutely implemented.

Retraction Stop Loss

If the price rises after buying, reaches a relatively high point, and then falls, you can set a stop loss target from the relatively high point. The specific value of this range is also determined by individual circumstances, and you can generally refer to the above. Say the percentage point of the maximum loss method. In addition, you can also add the factor of the down time (that is, the number of days), such as setting a retracement of a 5% drop within 3 days to perform a stop loss. Retraction stop loss is actually more often used for take profit.

Stop loss

The stop loss target is set at the time when the price is horizontal within a certain range after the purchase. For example, you can set a stop loss if the increase within 5 days after the purchase does not reach 5%. Horizontal stop loss is generally used at the same time as the maximum loss method to comprehensively control risk.

Expected R Multiplier Stop Loss

The R multiplier is the profit divided by the initial risk. For example, the final actual profit of a transaction is 25%. The initial risk is assumed to be 5% according to the maximum loss. Then the R multiplier for this transaction is 5. We need to apply its concept in reverse, first calculate an expected return, then determine the expected R multiplier, and then divide the expected return by the expected R multiplier. The result is the stop loss target. Regarding the determination of the expected return, if you are a system trader, you can use the average return on each transaction tested by your system history (note that it is not the average annual return); if you are not a system trader, you can use experience Determine the expected return on the transaction. The expected R multiplier is generally between 2.7 and 3.4.

Moving Average Stop Loss

Short-term, mid-term, and long-term investors can use MA5, MA20, and MA120 moving averages as stop loss points, respectively. In addition, the stop loss effect of EMA and SMA moving averages is generally better than MA. The MACD red bar starts to fall can also be a good stop loss point.

Cost moving average stop loss

The cost moving average considers the volume factor more than the moving average, and the effect is generally better. The specific method is basically the same as the moving average. However, it should be reminded that the moving average is always a lagging indicator, and you cannot expect too much of it. In addition, in the consolidation phase, you have to prepare to endure a large number of false signals of the moving average.

Bollinger Channel Stop Loss

In an upward trend, you can use the Bollinger Bands median line as a stop loss point, or you can use the Bollinger Bandwidth reduction as a stop loss point.

Volatile Stop Loss

This method is more complicated and is often used by masters, such as using the Bollinger channel of average actual price range, or the moving average of the attack intensity as the stop loss target.

K line combined stop loss

Including short cannons with two yin clips and one yin, two yin and yin after yin, or a guillotine with a yin and three lines, and the star of dusk, piercing, shooting star, double flying crow, three crow hanging Typical top-line K-line combinations such as treetops.

K line pattern stop loss

Including the stock line breaking the head and shoulder top, M head, arc top and other head shape neck line position, one Yin break three lines guillotine.

Tangential Support Stop Loss

The stock price effectively falls below the trend line or penetrates the support line, which can be used as a stop loss point.

Gann Line Stop Loss

Uncertainty in the market and volatility in prices determine that stop loss is often wrong. In fact, in each transaction, we can't figure out whether to stop the loss. If the stop loss is right, it may be ecstasy, and the stop loss is wrong, not only will the pain of reducing funds, but also a way to be fooled. It is the pain that is the most unbearable for investors.

Therefore, understanding stop loss is essentially how to correctly understand a wrong stop loss. We should also accept the wrong stop loss. For a simple example, if your stop loss is correct in the transaction, it means that every transaction is correct, and if your transaction is all That's right, why stop? Therefore, stop loss is a cost, a cost of finding profit opportunities, and a price that must be paid to trade a profit. This price is only small or large. There is no right or wrong. If you want to profit, you must pay. Cost, including the cost of a false stop loss.

Facing the wrong stop loss, don't avoid it, let alone fear. Only in this way can you trade normally and finally make a profit. This is my understanding of stop loss, including the understanding of wrong stop loss ^[2]

First, "Everything is ruled before it is established, or it is abolished if it is not planned." All stop losses must be set before entering the market. When investing in stocks, you must develop a good habit of setting stop losses when you open a position, and it is often too late to consider what standard to use when a loss occurs.

Second, stop loss should be combined with trend. There are three trends: up, down, and consolidation. In the consolidation phase, the probability of the stop loss being erroneous within a certain range is greater. Therefore, the execution of the stop loss must be combined with the trend. In practice, the author thinks that consolidation can be seen as an incomprehensible trend, and investors can rest and rest.

Third, choose a trading tool to grasp the stop loss level. This varies from person to person. It can be moving averages, trend lines, patterns, and other tools, but it must be suitable for you. Don't use it blindly because others use it well. The identification of trading instruments is very important, and the ability to use trading instruments can lead to completely different trading results.

What is the stop price

The stop loss price is a protection mechanism to avoid getting deeper and deeper. When the set stop loss price is reached, the system automatically closes the position and exits.

Stop loss is known as one of the prerequisites for short-term operations of shareholders. For investors who like short-term operations, stop loss is conducive to controlling their investment losses within a certain range, so it is also regarded as Important magic weapon for short-term operation. However, for stop loss, I think it is better to be cautious. Stop loss is a double-edged knife. After all, stop loss means cutting meat. If frequent stop loss and frequent meat cutting, then the large stocks in the stock market have long been cut into small retail investors, and small retail investors have therefore cancelled their accounts to become stock markets. "Black households". And stop loss, as a speculative method, is not very accurate, and once you make a mistake, you will cut the "meat" to a low point and never pick it up again. Loss into a loss operation. There are too many such cases in the stock market. According to the author's stock experience and lessons, the following three situations are not suitable for stop loss.

First, in the case that the fundamentals of listed companies have not deteriorated significantly, the chips in historical low-price areas are not suitable for stop loss . Stopping such chips often means giving away profits to others. For this kind of stock, a certain amount of break down, investors can boldly make up positions. Like the Lanzhou Minbai (600738) in August 1998, after the implementation of the rights issue, the stock index fell sharply, and it fell below the historical low of 7 yuan, and once hit the stock price to 6.30 yuan. But soon the stock price was pulled up, and the stock has embarked on a bullish journey ever since. Another example was Qiuling (600891), which once fell below the historical low of 6 yuan, hitting a new low of 5.06 yuan, but quickly pulled above 9 yuan. If investors cut these stocks at these low points, I'm afraid they will regret it for a lifetime.

Second, it is not suitable for stop-loss for individual stocks on the way . According to the theory of wave theory, a complete rising wave is composed of five waves, of which 1, 3 and 5 waves are rising waves, and 2, 4 waves are adjusting waves. The decline in the stock price during the rise should be regarded as an adjustment to the rise, and it is an opportunity to purchase. If the stop loss occurs at this time, the chip will often be thrown to a relatively low level, thereby reducing the return. The Shanghai stock market was adjusted to 1893 points. At that time, many stocks had fallen by more than 7%. If they stopped, then they would have left their chips above a low point.

Third, stocks that have fallen at a high level should not rush to stop losses . The dealer's shipment is often completed in multiple iterations. Although you are caught, but if it falls immeasurably, then you can still wait patiently for the dealer to unwind or lose a little when the next time it is pulled up. Especially for some small-cap stocks that are not particularly large, after a period of consolidation, it is more likely that the dealer will raise the stock price again. As recently as Wujiang Power (0975), in early July, the stock price fell from 27.30 yuan to 24.40 yuan, a drop of more than 10%, but the stock subsequently pulled up again, hitting a new high of 27.90 yuan. If the investor stops at 10%, then he is throwing his chips to a short-term low. Of course, for those stocks with huge gains and heavy volume declines, investors must stop losses as early as possible, so as to prevent the dealer from diving and shipping, which will bring you heavy losses.

1. Fixed stop loss method

This is the simplest method of stop loss. It refers to setting the loss amount to a fixed ratio, and closing the position in time if the loss is greater than this ratio. It generally applies to two types of investors: one is an investor who has just entered the market; the other is an investor in a market with higher risks (such as the futures market). The mandatory effect of the fixed stop loss is obvious, and investors do not need to rely too much on the judgment of the market. The setting of stop loss ratio is the key to fixed stop loss. The ratio of the fixed stop loss is composed of two data: one is the maximum loss that the investor can bear. This proportion varies according to investor mentality and economic affordability. It is also related to investors' profit expectations.

The second is the random fluctuations of trading varieties. This refers to the disorderly price fluctuations caused by the behavior of market trading groups when there are no external factors. The fixed stop loss ratio is set to find a balance point in these two data. This is a dynamic process and investors should set this ratio based on experience. Once the stop loss ratio is set, investors can avoid being shaken out by unnecessary random fluctuations.

2. Technical stop loss method

More complicated is the technical stop loss method. It is a combination of stop loss setting and technical analysis. After eliminating random fluctuations in the market, it sets stop loss orders at key technical levels to avoid further expansion of losses. This method requires investors to have strong technical analysis ability and self-control. The technical stop loss method is more demanding for investors than the former one, and it is difficult to find a fixed model. Generally speaking, the use of technical stop loss method is nothing more than betting on big profits with small losses. For example, after buying on the lower track of the rising channel, wait for the end of the uptrend to close the position, and set the stop loss level near a relatively reliable average moving line. As far as the Shanghai market is concerned, when the broader market index goes up, the 5-day moving average can maintain the short-term trend, and the 20-day or 30-day moving average will maintain the medium-to-long-term trend. Once the rising market starts, you can intervene at the 5-day moving average and set the stop loss near the 20-day moving average. You can enjoy most of the profits brought by the rising market stage, and you can get out in time to ensure profits . At the beginning of the rising market, the distance between the 5-day moving average and the 20-day moving average is very small. Even if you read the market incorrectly, stop the loss near the 20-day moving average. For another example, after the market enters the consolidation phase (settlement), a box shape or a convergent triangle usually appears, and the deviation rate between the price and the medium-term moving average (usually 10-20 antennas) gradually decreases. At this time, investors can step in at the maximum deviation rate in technology and set the stop loss at the maximum deviation rate in the game. This way you can go in and out and get the difference. Once the deviation of the price from the medium-term moving average is re-amplified, it means. If the price turns into a downtrend at this time, investors should decisively leave the market. The game is relative to the unilateral market. At the beginning of the game, the market is unstable and the market is volatile, and traders can step in. In the later stages of the game, the scope of the stop loss should be appropriately reduced to improve the insurance factor.

3 Unconditional stop loss

Regardless of cost, a stop loss that runs away is called an unconditional stop loss. When the fundamentals of the market take a fundamental turn, investors should abandon any illusions and kill them regardless of cost in order to preserve their strength and fight again. Changes in fundamentals are often difficult to reverse. When the fundamentals deteriorate, investors should take the initiative and cut out positions.

In summary, stop loss is a necessary means to control risks. Investors should have their own styles on how to make good use of stop loss tools. In the transaction,

It is very important for investors to grasp the overall position and trend of the market. Stop loss is used more in the high price circle, less or not used in the low price circle, and it should be determined by the market movement trend in the medium price circle. Taking advantage of the trend, using stop loss is the only way for investors to win.

4 One K line stop loss method

The stock market is a speculative market. As a gambler who wants to fight with the dealer in the short term, you must be careful. You want to bite the dealer, but the dealer wants your life. You must have basic survival skills in the financial market. After hard work, you can learn how to make money by keeping the principal. The first lesson of the stock market is not buying and then stop loss. Without the concept of stop loss you are not eligible to enter the stock market. If you do nt know the stop loss, you have nt learned technical analysis, and if you do nt perform stop loss, you have nt yet operated.

The rule of the stock market is that less than 10% of the winners, and the secret of this 10% win is to know that you have to run wrong, and run faster than anyone else. How fast is it? As soon as you lose a K-line, you will stop immediately. In other words, the low point of the K-line entering the market is his stop loss point. Again, the low point of the entry K line is his stop loss.

This K-line may be a 5-minute chart or a 15-minute chart on the plate, or a 30-minute chart or a K-line in 60 minutes. The longest is a K-line on the daily line. In other words, after you buy, you can only ensure that the principal is safe and profitable even if you quickly move away from the cost zone and continue to rise. There are many ways to cut meat and stop loss, but this is the sharpest stop loss method that is worth your practice. There is only one way to increase your skills quickly, and other methods are not as effective as this one.

Most people have the consciousness of stop loss, but they will not be resolutely executed, because usually when you reach your stop loss, there is a certain degree of loss. At this time, you may have a problem of not being able to cut. Hesitation turned into a chopped arm in the end. I've seen a lot of graduates after buying because they were stuck and broke their feet, but I rarely heard that they graduated because they performed a K-line to stop the loss.

If you break below this K-line after buying, it means that your entry point is wrong, you should leave quickly and wait for the next opportunity to enter. When you first perform this kind of operation, you will always place orders to stop loss, but in your continuous order you will break through some concepts and realize some tips. Slowly you will choose your entry point very carefully. Unless you have a 90% certainty that you won't take the shot easily, you will succeed at this level of practice. You will reduce a lot of unnecessary entry points, and you will not mess with pending orders. This kind of trick to seize the opportunity is only a habit. Your entry points are often ups and downs. At this time, it is not easy for the stop loss action to occur, and only the problem of stop loss is left.

The only magic weapon to avoid trapping is to cut meat to stop losses. A K line stop loss method is a magic weapon to avoid trapping. The small loss ran the trap problem? Didn't fix the problem of cutting heads? Think slowly! Figured out your internal force multiplied naturally.

Self-discipline determines the success of investment in the stock market. It only takes one form, only one operation method, and iterates on one stock repeatedly. Simplify complicated things and repeat simple things. Only two K lines are made each month, each line is 5%, the old-fashioned garden house on Huaihai Road is yours.

5. Two points stop loss method!

The two-point stop-loss method is to stop the loss by two points, that is, leave the market every time the loss occurs. Stop loss if you lose two points? At first glance at this sentence, almost everyone has to quibble, the two-point stop loss method? Yes, I want to repeat, stop loss if you lose two points. For example, the entry price of a certain stock is 10.00 yuan, and unfortunately it has fallen below 10.00 yuan. If you see 9.98 yuan, you need to stop the loss. how can that be? Can this be played? Are you dizzy? may. This way you can go for a long time. However, from the beginning of learning and execution, you must stop the loss if you really lose the two points, not the assumption, estimation, and simulation, but stop the loss if you really lose the two points. That is to say, the best case is that the stock price should quickly leave the entry position after the order is placed, and it cannot be pulled back, that is, it can only go up and cannot be placed, and it must be out when it is placed, rather than waiting for it sometimes.

Strictly speaking, the concept of stop loss is common to most people, but the difference between execution and non-execution. Many people repeatedly question where to put the stop loss? What stop loss method is best? What percentage is the standard? This is really an argument. Stop loss by moving average, stop loss by channel, stop loss by percentage, stop loss by angle, new high and low stop loss. Each has its own stop-loss method, there is no certain standard, usually everyone will choose the method that suits them or the operating environment, that is to say, the various methods are used casually. The result of casual use is inevitably difficult to use. If you use it badly and you are not used to it, the result will not be used, not use it! Many people just can't figure out which stop loss method is the best. In the future, it is better not to stop the loss. In fact, any one of the stop loss methods, as long as you choose one, is a good stop loss method. After I enter the market, as long as the price falls below my transaction price, I will prepare it. road. When I buy stocks, I usually place an order at 14:30 or before the close. If you are still looking for the best stop loss method, two-stop stop method, I strongly recommend that you use it, there will be no chance of being trapped after use.

The easiest, least skillful and flexible implementation is a standard. If you want a flexible and flexible stop loss method, you will be disappointed. No! Stop loss is hard to hit hard, there is no room for mechanical. Retractable and elastic stop loss means no. In terms of feeling, the two-point stop loss method is a very harsh and difficult stop loss method. However, you must remember that the nature of this market is cruel and ruthless. Not soft. How can you often soften your feet while wielding a big knife that protects yourself? Hope the market will let you go, don't get hurt this time, and then this miracle can be extended again and again. Then, earn money because you can survive the death every time. Think about it. How big is this opportunity? It is a very bad bad habit not to perform stop loss. Yes, very bad habit must be changed by extreme means. is it hard? Surviving in this market has never been an easy and joyful thing. For most people, if they become infected with bad habits, they will make themselves more tired, more aggrieved, more sad, and unable to live! You must develop good habits and retreat, and be faithful throughout your life.

That is. As long as you have a list, you must make money. There must be no loss of money and the stocks that are still in your hands. Some people ask, can you not cut the funds left and right? It makes sense to say this, so that the funds may stop losing soon. However, this is also strange. Looking back on the market, the funds have been cut down and the stop loss has been completed. There are too few people who have lost their homes. There are far fewer people than people who have decapitated their appearances, or who are too fast to turn over! The reason is that you will be more and more careful, and if you do nt place an order casually, you will cherish every transaction more and more, cherish your funds. At this point, your reason begins to dominate the speech, and your winning percentage starts to increase. When you don't lose, you start to win. win! It s not a one-time win, a one-time win, this market is long-lasting, yes, yes, you have to win a lifetime.

The significance of the two-point stop loss method is:

Do not place orders casually. It is a bad habit to place an order at will. It's cancer. And easy to learn and difficult to change. The significance of the two-point stop loss method is: absolutely to develop a stop loss habit, the market is not right, and immediately play. Always execute. The significance of the two-point stop loss method is: inelastic stop loss is the best, the only stop loss. Some people wonder if there will be too little stop loss at two points. The two-point stop loss method is absolutely a strict stop loss training. That's good. The two-point stop loss method seems to be a devil training class. The fastest way to learn is to stop the loss. People without stop-loss habits. The only way to get used to it. The most direct theory plus application skills. Stop loss. Must be the concept to be established when entering the market. Stop loss must be learned before learning any technical analysis. If you can learn this skill first, you can survive in this market. Especially starting with the two-stop method. Smart people may have discovered the entire trading system. Two-point stop loss method. The point is to leave the field after losing. The significance of stop loss lies in protection, defense, and preparation before re-attack. In theory, if the stop loss position is not reached, it means that it has always been profitable. Of course it is the highest operating realm. But how can you survive in this market before reaching this level? Realizing stop loss is the most important thing! Stop loss is a complete protection system. At the same time, you can always stand in the full combat readiness waiting for attack position. Because you will never be surrounded and you will not fall into a trap. Will not fall into the quagmire. You will always be able to maintain combat power. Attack at any time, and there is no backsight. Any good trading system comes after thousands of trials and errors, and then the test of time. A variety of analytical techniques can be drilled before entering the market. Can write and write long theories. But what are the techniques used at the moment of admission? What is the theory supporting the order? Once, twice, ten times, one thousand times, ten thousand times, after that, what are the techniques used and what are the theories supporting the order? What's left in the end, what's still in your hand? Is it a beautiful, beautiful analysis graphic? Or is it a theory that can be lengthy? Or, just, the simplest, the least aesthetic, and the most direct shot! To put it more bluntly, when facing a group of enemies, do they show them an airtight sword? Or tell them a whole story? Still, the time has come, give them a shot when they find a chance. In case of bad luck, if you do nt get a chance, just walk away and run away! Regardless of his posture, whether his posture is good or not, save his life first, then look for opportunities. In this market, there will always be quotes. As long as there are funds and can be free, there will be countless opportunities. No matter how good the theory is, it must be implemented, otherwise it is just empty talk. The true meaning of practice is inspired by theory.

Success depends on compound interest accumulation

The key to success is to adopt a correct attitude and set up a long-term and feasible solution to do it persistently. Success will get closer and closer to us. With a stable monthly profit of 10%, you are the king of the securities market.

The watch theorem is that when a person has a watch, he can know the time, but when he owns two or more watches at the same time, he cannot determine the more accurate time, but it will make people lose confidence in the accurate time. In fact, people only need to choose one of the more trusted ones, calibrate it, and use it as a judgment of time.

In the stock market, most people are often confused by the "two tables" when using the index formula, chasing up or selling, or dipping the bottom or killing. The formulas on the Internet have a tendency to mix several simple formulas together, as if the longer the code, the more information, the more magical and unusual the indicator can be. I understand that the optimization of indicators should first be simplified, and remove unnecessary code. Secondly, the meaning of the indicator value should be understood, and cannot be inexplicable. After all, the effect may be better! I like to simplify complex indicators, first divided into several units, and then according to their ideas to collect their own investment ideas to select a unit to establish indicators that meet their own use, one indicator and one idea are enough!

It is normal for stocks to make losses due to misjudgments. The key is to find the cause and lesson after mistakes and losses, and avoid making the same mistakes again. Comparatively speaking, it is much smarter to prevent high-level entrapment in advance than to rack your brain afterwards.

In actual combat, investors must prevent in advance and not be trapped at high levels. Please keep in mind the three most common disciplines: 1. Do not buy after the rally and avoid participating in the callback; 2. Do not rise suddenly after a long period of rise. Buy when zooming in; 3. Don't buy after the long-term rise and announce the major good news that the market has already expected; if investors can calmly face the above situation and control their emotions, then they can avoid at least 80% of the high level trap. Of course, in case of accidental quilt, the courage to plead for compensation and stop loss is also a necessary basic quality for investors, because only the courage to plead for compensation will be able to make bold profits in the future.

So how to set the stop price in actual combat? The author believes that the price of selling the pledge can refer to the following points: 1. The stock price fell below the middle price of the previous trading day; 2. The stock price fell below the lowest price of the previous trading day; 3. The stock price fell below the 5-day cost moving average 4. The stock price fell below the upward trend line; 5. The price fell below the lower edge of the previous stock price consolidation platform; 6. The stock price fell below the triangular bottom formed by the previous period of shock convergence.

Establishing the pledge price level is a technical issue, and it can also be formulated with the extent of psychological loss, such as -3%, -5% as the departure standard, and it is also an effective method to cope with the high position.

In addition to stop loss, margin repairs and share swaps are all measures that can be taken when dealing with quilts. For covering positions, you should pay attention to choosing the buying points when you turn upwards. You cannot make large positions in the early and mid-terms of the downtrend, as it will only be covered across the board. When it comes to stock exchanges, the key is to find strong stocks. Generally we can look for the following three groups:

1. Controlling stocks, they often ignore the decline of the broader market, and the stock price shows a strong trend of Hengqiang.

2. Popular stocks, such as a rebounding leading stock, Shenhua Holdings (600653) and Shenzhen Fangda (000055) in December.

3 Leading stocks. At the beginning of a wave of market, you should pay attention to leading stocks that are leading the rise. Leading stocks are the weathervane of the main bookmaker to guide the market. Exchange the weak stocks into the leading stocks to outperform the market.

Issues to be aware of in trading

1. As a transaction, its initial components include at least: the entry price, the stop price, the target price, and the position. These four factors must be considered in combination to measure the risk as a whole. Unless you have rich trading experience, do not consider setting the stop price after entering the market.

2. Once the stop loss price is confirmed, do not adjust in the direction of expanding potential losses. If the exchange rate reaches the preset stop loss level, you will still hope to send to the next support level, and you have lost the value of the stop loss, because the "support level" will continue to appear, which means that your loss may continue Expansion is endless. Therefore, you must strictly stop losses when losing money.

The principle of stock market stop loss is: First, there is no stop loss and no entry. No stop loss is a big loss, and a big wave of adjustments can make you lose more than half. Therefore, the first thing an investor buys in a stock is not to see where it will rise, but to see where it will fall. Even if you think that the stock is stable, you need to set a stop loss level. Risks in the securities market are unpredictable, and there are times when major institutions have to do so. Setting a stop loss level is to plan for the worst. In case of risk, the stop loss level can control the loss within a tolerable range.

The second stop loss plan must be strictly implemented. Everyone understands this truth, but it is quite difficult to implement. The fear of going up again after you sell will make your execution hesitant. The best way to execute the plan rigorously is to often recall the biggest mistakes you have ever made. Painful memories of failure cases will strengthen your determination to execute the plan. The freedom of the securities market is that no one will lead you and interfere with you, but where there is no constraint, it is destined to make the most mistakes. Investors' restraint on themselves is more important than all technology. This principle, the earlier the people involved in the city, the deeper they understand.

A stop loss instruction is also called a stop loss instruction or a STOP instruction. It refers to an order that is executed when the market price reaches the price level expected by the customer. Clients can effectively lock profits and reduce losses by using stop loss orders. After the investor opens a position, for the purpose of controlling risk, he then issues a closing order that triggers conditions. Its role is to control the expansion of losses; when a certain price condition is met, a closing order is quickly issued through the exchange's trading system. This condition often occurs when the price rapidly developed in the direction of the investor's original position. After this order was triggered, the exchange trading system will give priority to the transaction. Because this is a meat-cutting order, it is also called abroad. STOP instruction. It is just as important as the ORDER limit order and MAKET market order. ^[3]

There are two options when placing orders on the FXSOL Global Forex platform. There are four trading methods: "Market Order", "Pending Order", and "Pending Order" under Buy limit, Sell limit, Buy stop, and Sell Stop. This article aims to clarify the meaning and usage of these instructions.

Meaning and usage of stop loss order, limit order, market order

Market price order: It is easy to understand, that is, the transaction is executed immediately according to the current market price.

Stop order (STOP ORDER):

At a certain price level (this price is relative to the current price, it is not good for the direction of the operation.) Set an order, and when it arrives, automatically execute the buy or sell in the order.

a. Buy Stop Buy stop loss entry, the price specified in the stop loss order is higher than the current price (this price higher than the current price, compared to the current price, is not good. Generally buy low, this It is equivalent to buying a high price, so it is not good.) When the exchange rate rises to this level, the system will automatically execute the order to buy the specified currency pair. At that time, the exchange rate was 1.2120, and a stop buy order was set at 1.2175. If the exchange rate rises to 1.2175, the system will automatically buy the specified currency pair.

b. Sell Stop sell stop entry, the price specified in the stop loss order is lower than the current price (this lower than the current price, compared to the current price, it is unfavorable. Generally sell high, here equals to Sell low, so it is unfavorable price) When the exchange rate drops to this level, the system will automatically execute the order to sell the specified currency pair. At that time, the exchange rate was 1.2120, and a stop-loss sell order was set to 1.2080. If the exchange rate fell to 1.2080, the system would automatically sell the specified currency pair.

Limit Order (LIMIT ORDER):

At a certain price level (this price is relative to the current price, it is beneficial to the direction of the operation.) Set an order, and upon arrival, automatically execute the buy or sell in the order.

a. Buy Limit Buy limit entry, the price specified in the limit order should be lower than the current price (this lower than the current price, compared to the current price, it is advantageous to buy at a low price) when the exchange rate drops to this After the level, the system will automatically execute the order to buy the specified currency pair. At that time, the exchange rate was 1.2120, and a limit buy order was set at 1.2080. If the exchange rate fell to 1.2080, the system would automatically buy the specified currency pair.

b. Sell Limit sell limit entry, the price specified in the limit order must be higher than the current price (this higher than the current price, compared to the current price, it is advantageous to sell at a high price) when the exchange rate rises to this After a level, the system will automatically execute the instruction to sell the specified currency pair. At that time, the exchange rate was 1.2120, and a limit sell order was set at 1.2175. If the exchange rate rises to 1.2175, the system will automatically sell the specified currency pair.

Futures stop loss and profit setting tips

If you can't focus on defense, it's absolutely impossible to become a truly successful trader.

1. Use support or pressure to stop loss and take profit, that is, buy to open a position at the support level, take profit to close a position at the pressure level, and break the support after buying

Stop loss and vice versa. This is the most commonly used stop loss and profit method in futures trading, and is applicable to all trading strategies such as intraday, short-term, swing, medium and long-term. The premise of using this method is to comprehensively and accurately judge support and pressure. ^[4]

Support refers to the area where demand is concentrated, that is, the gathering area of potential buying power. Since the demand in this area is strong enough, it can prevent prices from falling further. It can also be understood that when the price reaches this area, it appears cheaper, so the buyer is more inclined to buy, and the seller starts to sell, so the demand starts to exceed the supply.

Pressure refers to the area where the supply is concentrated. When the price reaches this area, the seller's power will be triggered. Since the selling pressure in this area is strong enough, it can prevent prices from rising further. When the price reaches this area, the seller is more willing to sell, and the buyer's willingness to buy is weakened, so the supply exceeds the demand, and the price cannot continue to rise.

The pressure support on the K line includes: dense trading areas, previous highs and lows, price patterns, trend lines, moving averages, etc.

Pressure support on the time-sharing chart: yesterday's closing price, highest price, lowest price, settlement price, today's opening price, average price, intraday high and low, etc.

The advantage of this method is that you can make the stop loss and take profit settings follow the market fluctuations as much as possible. The disadvantage is that because there are many users, false breakouts often occur. Therefore, when applying this method, it is necessary to be able to identify traps and re-enter the market according to new signals after exiting the market.

2. Use the amount of funds as a stop loss, that is, before each time you enter the market for trading, you clearly plan how many points you will lose until the loss. This is a good method of fund management, but the premise of using it is that the trader must have a model with a winning rate higher than 60%, and at the same time ensure that the total profit points are higher than the total stop loss points. For example, if you operate ten times a month, make 6 profits, and stop 4 times, the total profit is 600 points, and the total loss is 200 points, so the result must be a win. How to obtain this profit model, we must first be able to use the risk-reward ratio (usually 1: 3) to find the model, secondly, we must have a deep understanding of the nature of the fluctuations in the market operation, and the third pair of market trends such as trend direction, trend type, and trend development period Make a full judgment.

3. Stop losses with indicators. This indicator does not refer to an indicator provided by the software, such as RSI, MACD, etc., but refers to an indicator designed by the trader himself based on price, volume, energy, and time, and then trades according to his own indicator. When the indicator no longer exists for trading Signal, immediately stop or exit the transaction. Stop loss with indicators is mainly used for programmatic traders or in. Its advantage is that it can overcome the weakness of human nature. As long as the indicator has no more signals for trading, there is no reason or reason to continue to stay in the market for trading. It is necessary to immediately take profit or stop loss and wait for the next opportunity, but the premise of use is that the trader Be sure to determine the execution details of the signal, that is, you must know in advance whether to use the closing price as the signal or the intraday price as the signal. Many traders do not consider this when using indicators to trade, so it often causes Failure to follow signals, or serious losses or missed opportunities.

4. Stop loss with time. This method is mainly used in the intraday ultra short trading mode. The intra-day ultra-short mode refers to a trading mode in which a trader takes a few or dozens of points in a certain period or a certain position, holds a position for a few seconds, and a few minutes for a long time. For this model, the principle of the transaction is to use the factors such as the impact of external disks, intraday support and pressure breakthroughs and false breakouts, sudden news, etc. to move sharply and instantly. Make money. Its advantage is that when the judgment is correct, the profit can be obtained instantly, or even the excess profit; when the judgment is incorrect, it can be withdrawn without loss or with a small amount of profit. The disadvantage is that it is not suitable for novices or part-time traders. Because it requires traders to have a good response ability, requires traders to quickly assess the general atmosphere and potential direction of the market, and requires traders to always pay close attention to the market, especially when they have a position.

Calculation of risk tolerance of stop loss

There are many technical analyses of stop loss on the Internet, all of which are very vague;
An example is given below for analysis;
For example: the price of silver is 5,000 yuan / kg, investors short, the risk is 200 yuan / kg, that is, the price of silver will rise to 5200, and the investor will close the position. This is set by your own tolerance, not based on technical analysis. Set in advance and strictly enforce it.
If the operation is strictly performed, it is difficult to execute the operation plan during the investment operation process, it is difficult to grasp the return, the investment is long-term, and the trading heart is impulsive. ^[5]

What Is a Stop Price?

Stop loss

(Investment term)

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