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Published on 2019-02-11 08:26:10 Share it web version
                                    How to judge whether or not to stop loss

There are often stock friends who will ask: If a stock is quilted, do not stop the problem.

For those who want to stop loss, everyone's views are different, mainly depends on your investment style and resistance to risk.

Is it a short-term behavior of price speculation, or a medium- and long-term behavior of value investment; can bear a large floating loss, or can not stand the book loss.

If you are doing price speculation, then after the investment, if there is any inconsistency with the results of your pre-judgment, then it is necessary to stop the loss. Don't think too much, when you break it, it will stop.

And if you are targeting mid- and long-term value investments, then there is no need to worry about stop loss when you have a floating loss after investing. At this time, it is not a stop loss, but a serious analysis of the investment criteria you selected at that time. If the investment target is the same as the initial analysis, there is no need to stop the loss. Unless you can clearly determine once again that the investment you are holding has a large downside, there is no need to think of a stop loss in the event of a loss.

Often in some forums or stocks and offline activities, I heard many people say that they have to stop at 3 or 5 points. Many people who listened to this regard this statement as a benchmark, and it is necessary to stop the loss of 3 to 5 points. In fact, this is subject to the preconditions. If you don't understand the requirements of the previous question, you will blindly copy the photo set, which is a great mistake.

For those who speak 3 to 5 points, they have to stop loss. Most of them are short-term players. For this short-term speculation of buying and selling, it is natural to pursue short-term behavior. The trend of their own expectations is inconsistent. Once the retracement loss reaches the stop loss requirement, it is natural to stop the loss. The short-term emphasis is on the consistency and probability. If it is inconsistent with expectations after the intervention, it is mostly a problem with the joint force. At this time, the probability of winning is greatly reduced. In the case of low winning rate, the stop loss is very necessary.

But if you are neither a short-term player nor a short-term disc sense, but learn to use a short-term model to stop loss, the result is imaginable, and will inevitably repeat the cycle on the stop loss. Until there is no damage. This is why some people, in the absence of a big decline in the market, have not added any leverage, but the magnitude of the loss will be significantly higher than the decline of the index, which is why. Because it stops at A, it is still a knife to change to B, and it still has to be replaced by C. When the market is fluctuating and fluctuating, so frequently, the index does not seem to fall, but your stop loss has stopped a large chunk.

This is why some people often say that if they buy, they will fall, and when they sell, they will rise. Because you are not a short-term player, you have chosen a short-term buying mode. However, it is not possible to stop the loss in time according to the stringent requirements of the short-term, but to use the emotion to make a stop loss. Most people don't use the trading model to stop loss, but the stop loss when the emotion can't stand it. In this way, it is natural to buy when the emotional expansion is high, and when the emotion is low, choose to sell this behavior. It's not that you have a magical reverse indicator effect, but your emotions are playing a role.

Short-term disc feeling is difficult to practice, mood swings can not be tolerated, fundamental analysis can not be deep, then what do you come to the market, is it to send money to be harvested?

In the following situations, it is not necessary:

1,There is a serious problem with the fundamentals.(For example, like a longevity, this is already a serious problem, and it’s not just a loss, it can only be waiting for more sets)

2,Serious fundamental problems, insolvency, and risk of delisting.(like Zhonghong, LeTV)

3,The performance can't support the stock price. If there is a continuous down limit at the high level, it will still fall into the reasonable valuation area, and there will be a burst of financing.(such asShanghai Lai Shi, Kang Dexin, Kangmei)

In either case, the first time unconditional stop loss leaves.

Posted on 2019-02-11 14:00:21
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