Stop immediately in 13 Conditions

Source: Internet
Author: User

We said: if a person can be a securities investor, the essential basic qualities of a person are not smart, sharp-minded, or long-lived, knowledgeable, and highly educated, instead, we must have the courage and confidence to stop the loss ". Stop loss is a rigid means to save profits. However, it is not recommended to stop loss immediately in the following 12 conditions.

1. Investors are stuck in depth due to being indecisive. The current loss is too huge. Do not stop the loss because it is too late to recover the loss. Instead, it will severely attack the investment mentality.

2. Do not stop the stocks of the banker who wash their disks. Before the banker rises, they often adopt the method of flushing disks to reduce the pull resistance in the future period and increase the average market cost, trying to drive uncertain-willed investors down, investors must maintain confidence at this time, and do not stop at will.

3. Do not stop when sorting out normal technical callbacks in the upward trend. As long as the overall market trend is not weak, you can stick to the operating strategy that focuses on the midline shareholding, short-term high throw and low suction.

4. Do not stop when it is near the important bottom area. When the stock index is in the bottom area, it usually does not have any momentum to fall, but sometimes the market still has a final blank drop. Investors must firmly hold their shares.

5. When the stock price falls for a limited period of time, do not stop. After a long period of stock price adjustments and deep declines, the stock price is compressed to a very low position, and there is a limited space for Further downgrading. Not only can investors not kill the decline, but they must also consider how to actively absorb it.

6. Do not stop when the index is heavily sold. Different from individual stocks, the index's severe overselling signal is often more reliable than individual stocks. However, to check whether the dashboard is oversold or not, you cannot use common indicators. For more information, see index-specific indicators, including Stix, oversold obos, increase/decrease ratio ADR, and ADL.

7. When the scale-down at the end of the bear market is lowered, do not stop. The shrinking of capacity shows the depletion of the declining momentum. It is no doubt wise to lose the warehouse.

8. Do not stop when a panic appears. The appearance of panic selling is often an important feature of the stock price at the bottom of the phase. Investors should not blindly join the ranks of panic selling.

9. When the stock price is close to the long-term historic important support level, do not stop. In this case, it is appropriate to wait and see, but do not rush to rebound at the bottom. You need to wait for the final confirmation of the trend before taking further actions.

10. When the stock price seriously deviates from the value, do not stop. In a bear market, irrational slump often occurs. In this wave of chaos, some stocks with investment or speculative values will fall below the ordinary low price that is not expected, at this time, investors need to have long-term patience, and should not stop the loss indiscriminately.

11. When stocks fall below a certain position and stabilize, they are concerned by mainstream funds in the market, and incremental funds are constantly involved. Stocks that can effectively scale up their capacity should not be stopped.

12. Based on the risk-to-benefit ratio, if you buy the stock at the current price without considering your own profit and loss, the risk in the future will be far greater than the profit, and you must stop the loss. If the benefits in the future are far greater than the risks, do not stop.

13. Do not stop when a rebound occurs: the stock price has fallen sharply and you have no stop loss. When the stock price rebounded, do not be afraid to sell it easily. You got involved in 10 yuan, and you didn't sell the stock price until 5 yuan. When the stock price rebounded from 5 yuan to 6 yuan, you were ready to sell it. This is a distorted mentality. At this time, you don't feel that you are stopping. Instead, you feel that you have made a profit. In fact, you are cutting meat!

Stop loss is more precisely a method of identifying errors, a rigid means of saving profits and capital. As the saying goes, even if there is no firewood! On the contrary, how many times can you withstand market confrontation?

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.