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HomeStocksWhat are the setting methods of stock stop loss?

What are the setting methods of stock stop loss?

The stock stop loss setting method is as follows:

  1. Balance point stop loss method

The original stop-loss level is set up after the position is opened, and the original stop-loss level can be set at a distance of 5%-8% from the opening price. When the stock price rises after buying, the stop loss will be moved to the opening price, which is your break-even point, that is, the stop-loss position of the balance point. In this way, investors can effectively establish a “zero risk” system, which can cash out part or all of the profits at any time.

  1. Time stop loss method

Time stop-loss is a stop-loss technique designed according to the trading cycle. For example, if the trading cycle of a certain stock is expected to be 5 days, and the buying price hovers for more than 5 days after the purchase, then the position should be resolutely sold the next day. . Judging from the time stop loss, the price may not have reached the stop loss position, but the holding time has crossed the time limit.

  1. Technical stop loss method

Set stop-loss orders at key technical levels to avoid further losses. There is no set pattern for the technical stop-loss method. Generally speaking, using the technical stop-loss method is nothing more than betting on a large profit with a small loss.

Its main indicators are: the important moving average is broken; the tangent of the trend line is broken; the neckline of head patterns such as head and shoulders , double top or arc top is broken; the lower rail of the ascending channel is broken Broken; the vicinity of the gap is broken.