The ultimate goal of stock trading is to make money.
But how many people speculate and become speculations --- want to make themselves less or no loss, and then no longer stocks.
Regardless of whether you are a novice or a master, what you must do-three principles for making stocks and making money:
1) Maximize profit,
2) Reduce losses,
3) Control risks.
Only by maximizing profits, reducing losses, and then controlling the unknown risks of individual stocks, can you make money.
Now start a little analysis:
One, maximize profit (this is the logic of take profit)
When the stock has risen to a certain level, and you are uncontrollable about future fluctuations, you should choose to take profits and protect the benefits you get before you can belong to your own earnings. Otherwise, the trend will turn, the earnings will decrease, and the mentality will change The probability of the return is not high or negative.
Second, reduce losses (generally refers to stop loss)
When you buy a stock, you should have a stop-loss price, which is also a kind of self-protection. Only by protecting yourself and reducing losses can your profits be maximized.
Another point, the stop loss has to look at the trend.If the trend is not broken, then you can stop the loss and the stock will rise back immediately.If the technology is not good, don't do it like this, otherwise you will lose badly.
Third, control risk (logic of stock selection)
Risk control is mainly a matter of stock selection.Try not to choose junk stocks, otherwise no one will pity you if you die.Dad stumbles and ends, and finally withdraws from the market, your money will be directly volatilized.
In addition, stocks are generally bought separately, buying three or four, to reduce the collapse of a certain accident.
Remember, people who know how to make money are also those who know how to control risks.
The simple three-point principle is based on practical operation, followed by understanding, and if you don't understand, you will retreat and never enter the market.
At present, artificial intelligence is developed, and I am also researching, preparing to develop a system for intelligent stock selection and intelligent diagnosis unit, this system will look forward to in the future,
For the previous article, the stock market has three main points: 1) trend, 2) timing, 3) mentality, there will be more in-depth articles to share with everyone, thank you for reading and sharing.
Finally, remind everyone that this is a personal opinion, stocks are risky, and trading needs to be cautious.
