Trapping is the last thing people want to encounter in the stock market, but in practice, every investor cannot avoid being trapped. It seems that it is important to set the stop loss level reasonably to avoid the expansion of losses. So how do stocks stop losses? What are the techniques for stock stop loss? To survive in the stock market, one must learn how to stop losses. Here are some tips on how to stop losses in stocks for your reference.

How to stop losses in stocks?

1. Set according to the degree of loss, for example, stop loss when the current price is 5% or 10% lower than the buying price. The stop loss level for short-term purchases of investment models is usually set between 2% and 3%, while the stop loss level for long-term purchases of investment models has a relatively large decline ratio.

2. Selling when the stock price drops by a certain amount from the highest price compared to the recent highest price, and if the investor is in a loss making state at this time, it is called stop loss; Those who are in a profitable state are called stop winning. This method is mostly used to stop winning. When the decline reaches a certain level, it depends on the activity of the stock price to stop winning. For more active stocks, the range should be set higher.

3. According to the support level settings of technical indicators, there are mainly: 10 day, 30 day, or 125 day moving averages; The upper trajectory of the stock price below the Bollinger Bands; MACD shows a green bar; When SAR falls below the turning point; When the William index is above -20 in the short, medium, and long term; When the 5 antennas of WVAD penetrate the 21 antennas of WVAD; When the 20 day PSY moving average is greater than 0.53, PSY's 5-day moving average crosses PSY's 20 day moving average

4. Based on historically significant key positions, such as the location where major policies were introduced.

5. According to the K-line shape, the reference points are mainly: the tangent of the trend line; The neck line position of the head shape such as head, shoulder, or rounded top; The lower track of the ascending channel; The edge of the gap.

6. Set according to the integer price range of the stock price, such as 10 yuan; 20 yuan. There is not much scientific basis for how to stop losses in stocks, mainly because integer cutoff prices have a certain psychological support and resistance effect on the investing public.

7. According to the setting of transaction intensive areas, such as the peak area of mobile cost distribution. Because transaction intensive areas can directly support and resist stock prices. After a solid bottom is penetrated, it often transforms from a strong support area to a strong resistance area.

8. Set the psychological price based on one's own experience to determine the final loss level. When investors pay long-term attention to a certain stock and have a deep understanding of its nature, setting stop loss levels based on psychological price levels is often very effective.