First, set a stop-loss line for short-term trading.
Short-term trading is the trading method with the largest number of participants in the market at present. Because short-term means high frequency, short-term trading will inevitably lead to transaction failure. At this time, it is very important to stop loss in time. Short-term trading, a mature trader's order strategy must clearly have a stop-loss line. Generally speaking, this stop loss line can be set as cost price? 3%, so after placing an order, once the stock fails to run as expected but breaks through its stop-loss line, the trader must stop and sell unconditionally according to the strategy.
If the trading object is the popular star leading stock in the market, can the stop loss line be set at the cost price? About 5%, why is the stop loss line of leading stocks higher than that of ordinary short-term stocks? This is because the intraday fluctuation of leading stocks is much higher than that of ordinary stocks, and leading stocks often jump up and down when sharing time. Appropriately relaxing the stop-loss line is to give yourself a higher chance of fault tolerance, which is very useful in actual combat. You will find that many leading stocks fall rapidly in time-sharing, and traders can easily break through the conventional stop-loss line. If you can treat leading stocks and ordinary stocks differently at this time, then you can enjoy the feast of leading stocks. In short, you should give the leading stocks more time for actual combat, and don't rush to stop loss unless there are clear short signals in all aspects. Otherwise, it is not easy to lighten up.
Second, set a stop-loss line for long-term trading.
Long-term trading and short-term trading are completely different styles and methods. Long-term trading pays attention to beating the market with time and taking profits. The last thing a long-term trader needs is patience. So how to set a stop loss for this trading method?
Generally speaking, for long-term trading, all aspects of a stock must be thoroughly analyzed before placing an order. Traders are interested in the long-term future potential of this company. After placing an order, the stop loss settings are mostly loose. The common stop loss line in actual combat is set at 15%-20%, but a short warning line is needed here. 10%, that is to say, if the stock falls to the cost once it exceeds the normal expectation after holding the position? 10% will attract our attention. At this time, it is necessary to re-evaluate the fundamentals and technical aspects of the stocks held and analyze what caused the stocks to fall. If it is due to major factors such as sudden negative changes in the fundamentals of listed companies, traders must make a stop loss decision in time. On the other hand, if the short-term stock price is affected only by some external factors unrelated to the company's own operation, it can still hold normal positions. Therefore, in long-term trading, it is very necessary to set a short warning before the stop loss line.
The above are personal opinions and are for reference only.