1. Fixed stop loss method

2. Technical stop loss method

The more complex one is the technical stop loss method. It combines stop loss setting with technical analysis, eliminates random market fluctuations, and sets stop loss orders at key technical levels to avoid further expansion of losses. This method requires investors to have strong technical analysis skills and self-discipline. The technical stop loss method has higher requirements for investors compared to the previous one, and it is difficult to find a fixed pattern. Generally speaking, using the technical stop loss method is nothing more than betting on big profits with small losses. For example, after buying at the bottom of the uptrend, wait for the end of the uptrend before closing the position, and set the stop loss level near a relatively reliable average moving line. As for the Shanghai Stock Exchange, when the overall index rises, the 5-day moving average can maintain a short-term trend, while the 20 day or 30 day moving average will maintain a medium to long-term trend. Once the upward trend begins, you can intervene at the 5-day moving average and set the stop loss near the 20 day moving average. This not only allows you to enjoy most of the profits brought by the stage's upward trend, but also allows you to escape in a timely manner when the head is formed, ensuring profits. In the early stages of an uptrend, the difference between the 5-day moving average and the 20 day moving average is very small. Even if you misread the market and cut losses near the 20 day moving average, the losses will not be too significant.

3. Unconditional stop loss method

The stop loss that runs away without considering costs is called unconditional stop loss. When the fundamentals of the market undergo a fundamental turning point, investors should abandon any illusions and rush out regardless of cost in order to preserve their strength and seize the opportunity to fight again. Fundamental changes are often difficult to reverse. When the fundamentals deteriorate, investors should make a decisive decision to cut their positions and exit.

In summary, stop loss is a necessary means of controlling risk, and investors should have their own styles on how to use stop loss tools effectively. In trading, investors' grasp of the overall position and trend of the market is crucial. Use stop loss more in the high price circle, use it less or not in the low price circle, and in the medium price circle, it should be determined according to the market movement trend. Taking advantage of the situation and using the stop loss level well is the only way for investors to win.