Only a few people make money in the stock market. If you are still losing money while trading stocks, it is simply because you do not know how to select stocks and grasp buying and selling points, and you do not know how to conduct technical analysis. The stock market is like a casino. To survive in a market where the strong prey on the weak, it is impossible without a set of profit methods, skills, and self-protection discipline.

Stop loss, for stock investors, although this term sounds uncomfortable and unpopular, in fact, for a professional investor, stop loss is an important part of a series of trading programmers. It has no emotional color and is just a part of the predetermined plan. It is as natural as playing a video game, executing tasks according to the designed program, rushing through levels to gain profits, and breaking the arm of a hero, which is extremely natural.

How to set the stop loss point reasonably?

There are two types of methods for setting stop loss points: the first type is formal stop loss, which means that when the reasons and conditions for buying or holding disappear due to changes in market conditions, immediate liquidation or stop loss is required. The second type is auxiliary stop loss, which is commonly used in practice, including maximum loss method, drawdown stop loss, sideways stop loss, expected R-multiplier stop loss, key psychological price level stop loss, tangent support level stop loss, moving average stop loss, cost average stop loss, Bollinger Bands stop loss, volatility stop loss, K-line combination stop loss, chip concentration zone stop loss, CDP (contrarian operation) stop loss, etc. Investors should make judgments based on their own risk tolerance and choose the appropriate stop loss method.

Stop loss tips:

1. Low level sideways for a long time, the first wave of upward movement, before reaching the early lock up zone, no volume of downward exploration, rapid or significant decline, ignore it, never stop loss, and increase buying;

2. Long period of no volume sideways trading at high levels, breaking through the platform with increased volume, without being trapped in the upper level, continuing to increase volume and rise. Once the upward trend reverses, regardless of whether the decline is due to increased volume or not, resolutely stop losses;

3. The stock price fluctuates in a box shape in the trading intensive area, as long as it does not fall below the bottom of the box, there is no need to stop loss;

4. The stock price has been running along a slow upward channel for a long time, with a significant cumulative increase. Although a huge amount has not been missed, once the upward trend reverses, we will resolutely stop losses;

5. Buy at the end of the decline and encounter an unlimited break down after buying, no need to stop loss.