Stop loss, also known as "cutting meat", is very popular in the investment market, especially in the stock market. It refers to the timely liquidation of a stock when the loss reaches the psychological bottom price of the investor, in order to avoid forming larger losses. This is called stop loss. If you are afraid that you do not have time to stop loss or are unwilling to stop loss, you can actually set stop loss to automatically sell. Let's take a look at how to set it.
How to set stop loss price for stocks and automatically sell them?
Stock stop loss selling can be set in stock trading software. Most stock trading software has "warning orders" and "pre paid orders", but investors need to set them in the morning every day. During trading hours, by opening the software, you can entrust yourself with a psychological stop loss price. If the stock price drops to the set stop loss price, it will automatically trade. If not, continue to hold.
Because stock orders are on a one-day basis, investors need to set a stop loss price in the morning every day. When setting a stop loss price, there are also techniques, such as setting a sell price and using it as a basis for stop loss. Then set the magnitude of the decline, usually around 5%, and set the number of shares to be sold. For example, if a stock is bought at a price of 10 yuan and 100 shares are sold with a 3% drop, then when the price of 10 yuan drops by 3%, the software will automatically sell 100 shares to stop loss.
When trading stocks, it is important to learn how to stop losses. Before entering the market to buy or sell, it is important to clearly plan how many points to lose as a stop loss and exit. This is a good method of fund management, and it can make people decisive and never lose. Timely stop losses can save people from the fire and water, because investment is long-term and trading is impulsive.