Stop loss means that when the stock price falls to the lowest price you can bear, you sell it flat, which is also a stop loss. How much the future falls, that's your loss.
Take profit is how much profit you plan to make, such as 10%, 20% or 30%. When the stock price rises to this point, it will be sold, and it doesn't matter how much it rises in the future.
If investors can do this, the probability of making money is still high. Sadly, because of greed, it is difficult for most people to do it, so most people lose. This is the root cause.
What is the real meaning of stop loss?
Personally, the key to stop loss is psychological stop loss. Once you find that the workshop is not the expected trend, admit it and make a good response, such as choosing a better location to appear.
In the technology of thinking trading, this is called "live stop loss"
What does stop loss mean?
1. Stop loss means selling flat when the price of crude oil falls to the lowest price you can bear.
That is, stop loss. How much the future falls, that's your loss.
2. Take profit is how much profit you plan to make, such as 10%, 20% or 30%.
When the price of crude oil rises to this point, it will be sold, no matter how much it rises in the future.
In the field of international investment, the setting of stop loss and take profit is the basic operating rule. If it can be used reasonably,
It can greatly reduce the trading risk of investors and protect profits.
The setting of stop loss point is also very important.
If the take profit setting is low, the profit will be less. If the take profit setting is high, the market will not go up and the list will not be closed automatically.
If the market reverses, it will immediately turn into a loss.
What does stop loss mean?
Take profit means that when you place an order, you will have an expected profit target. When the profit reaches your expected goal, you will automatically close your position to avoid possible losses in the future.
Stop loss means that when you place an order, there will also be a range where you can bear the loss. If there is a loss, you don't have time to pay attention, and the stop loss will automatically help you close your position and prevent the loss from expanding!
What does the stop-loss price in the stock mean?
Buying stocks is to make money, but not all the stocks you buy can make money. When you buy a stock, the ticket will fall instead of going up, and the downward trend is not easy to change. At this time, it is necessary to set a psychological loss range and sell it in time at this price to avoid greater losses. Of course, the stop-loss price should be determined according to the market conditions, personal habits, personality and other factors at that time, generally 7%~ 10%, and the maximum is not more than 20%. If the loss has exceeded 20%, then be a shareholder.
What does stop loss mean?
Take profit and stop loss crude oil can set the point where you buy and sell. For example, at present, the crude oil is 2700 points, and now you place an order with a profit of 2760 points. When the number of points rises to 2760, this list will automatically help you close your position, and you won't miss the high profit point. You deduct the commission spread to make you a net profit, and the stop loss is the same as opening a position at 2700 points. For example, you can set the maximum loss point of 2670 points to close the position, and the stop loss is usually set when people don't have time.
What does stop loss mean?
Stop loss rule
I. The crocodile principle
Professionals often use crocodile principle to explain the importance of stop loss. The original intention of the crocodile principle is: suppose a crocodile bites your foot. If you try to get rid of your feet with your hands, crocodiles will bite your feet and hands at the same time. The more you struggle, the more you get bitten. So, in case a crocodile bites your foot, your only chance is to sacrifice one foot. In the stock market, the crocodile principle is: when you find that your trading deviates from the direction of the market, you must stop immediately, without any delay or luck. Crocodiles eat people sounds cruel, but the stock market is actually a cruel place, and people are swallowed up or disappeared by it every day.
Let's look at a set of simple figures: when your capital has lost from 654.38+million to 90,000, and the loss rate is 1 ÷ 10 = 10%, you need to recover from 90,000 to 654.38+million, and the profit rate is only1÷ 9. If the loss is from 6,543,800 yuan to 75,000 yuan, and the loss rate is 25%, it will take 33.3% to recover the profit rate. If you lose from 654.38+million to 50,000, and the loss rate is 50%, you need 65,438+000% to recover the profit rate. In the market, it is not difficult to find a stock that has fallen by 50%, but I'm afraid it's only luck to ride a dark horse that has risen by 100%. As the saying goes, if you stay in the green hills, you are not afraid of burning without firewood. The meaning of stop loss is to ensure that you can survive in the market for a long time. Some people even say: stop loss = regeneration.
Second, the reason for the stop loss
Stop loss has two reasons. The first is subjective decision-making mistakes. Every investor who enters the stock market must admit that he may make mistakes at any time, which is a very important concept. The reason behind it is that the stock market is random, and the game of tens of millions of people makes it impossible to have a fixed law at any time. The only thing that never changes in the stock market is change. Of course, the stock market also has some non-random characteristics in a certain period of time, such as banker manipulation, capital flow, group psychology, natural cycle and so on. This is the soil for stock market experts to survive, and it is also the basis for attracting more people to join the stock market and maintaining the operation and development of the stock market. However, the operation of these non-random features will certainly not be a simple repetition, and can only exist in the sense of probability. If the probability of success is 70%, then there is also a 30% probability of failure. In addition, any law will always fail, and at this time you may meet a smart one. When the probability of failure becomes a reality, or the law fails, we must take a knife to stop the loss. Second, objective changes, such as unexpected sudden positive or negative changes in the fundamentals of a company or industry, major changes in macro-policies, wars, coups or terrorist incidents, natural disasters such as earthquakes and floods, broken agency capital chains or traders being arrested, etc.
Third, retail patents.
It should be noted that stop loss is a patent of retail investors. It is impossible for institutions to stop losses, because there are too many chips, and generally no one can take them. A common way for institutions to deal with decision-making mistakes or external events is to take some chips as bands and then wait for an opportunity to ship them step by step. Some retail investors in Zhuangzi think that the dealer hasn't shipped the goods yet, so it's not cost-effective, because the band operation is almost entirely in the hands of the dealer, and the cost can be gradually diluted through the band, which is almost impossible for you to do. Therefore, retail investors should give full play to their advantages of small size and good turnover. When they stop loss, they must resolutely stop loss. When the situation improves or the limelight passes, they should come back to visit the persistent banker and perhaps receive a generous gift.
Fourth, learn to short.
There is no short-selling mechanism in the domestic stock market for the time being, so we can only do more. If there is a short-selling mechanism, then long stops are mostly short. Because when you stop to be a bull, there are only two possibilities to predict the future, one is consolidation and the other is decline. If you predict consolidation, you will leave the market and wait and see, and if you predict decline, you will short your backhand. Conversely, bears also need stop loss, and the stop loss of bears will often be a "mutiny" of bulls. Whether you can hold money or short is the simplest sign to judge whether a person is an investment expert. Since1May 997? From 12, if you have spent more than half of your time holding money, that is, short positions, congratulations, you have entered the ranks of masters or quasi-masters.
In the spot electronic trading market, two-way trading has become possible, providing a two-way trading platform for the majority of retail investors. This is an essential supplement for A-share investors. When A-shares fall unilaterally, they can do spot transactions such as silver and coke, such as China Coal Coke Network, Bohai Electronic Exchange and Pan-Asian Nonferrous Metals Exchange ...
What does stop loss mean?
Stop loss means: close the position when the loss reaches an unbearable position;
Take profit means: when the profit reaches a satisfactory position, close the position
What do stop-loss price and take-profit price mean respectively?
Stop loss refers to lightening the position when the spot price falls below a few percent or falls to a certain price. This can control the risk or loss within a certain limit. But many people rarely use the setting of take profit point.
Why have some spot prices gone up a lot, even several times, and investors have long been washed away? And other investors failed to make a profit when they doubled, and later had to lose money? Because they didn't set a take profit point.
By setting the take profit point, we can solve this problem and maximize our own interests.
Three Stop-profit and Stop-loss Methods
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