1. When the quantity indicator sends a clear sell signal, a stop loss strategy should be used.
For example, when the stock price falls below a certain important moving average, stop loss is necessary; Stop loss when the J value of the random indicator drops below 100; Stop loss when the trading volume reaches the daily limit; When MACD forms a dead cross, one of the key techniques for accurately stopping losses is to stop losses and so on.
2. When the technical form shows a breaking trend, a stop loss strategy should be used.
For example, when the stock price falls below the important support zone, crosses the neck line of the bottom pattern downwards, chooses a downward trend with a convergent or divergent triangle, and is about to complete the construction of top patterns such as head and shoulder tops, circular tops, and multiple tops, stop loss strategies need to be applied.
3. Investors entering the stock market at the peak of a bull market should use stop loss strategies.
At this point, all technical indicators in the market are in a synchronized peak divergence state. The distribution of moving costs shows that there is a higher proportion of profit taking positions in the market, and investors often feel proud and boast. At this point, the market is on the brink of danger, and timely stop loss is the key to accurately implementing stop loss measures when encountering unfavorable operations. Besides, what are the techniques for stock stop loss?
4. When the overall trend of the market is running downwards, investors need to assess the size of the downward potential of the overall index and individual stocks in the future, and use this as a reference for whether to stop losses. For stocks with large downward potential in the future, they should resolutely stop losses. Especially for some stocks that were popular in the early stages and had huge gains.
5. Investors with excessive positions or those who are fully hedged should appropriately cut losses on some stocks.
The purpose of doing so is not only to avoid risks, but also to promote mental stability.
6. When the loss reaches a certain level, a stop loss strategy should be used.