In the stock market, most investors will set a stop profit and stop loss after buying individual stocks, so why do they set a stop profit and stop loss? How to set stop profit and stop loss? The following Kowloon Securities has prepared relevant content for us for reference.
Stock setting stop loss can control the risk of individual stocks, ensure the safety of investors' funds to the greatest extent, reduce losses, and improve their survival rate. Among them, investors can set stop profit and stop loss according to the following factors:
1. Take profit and stop loss at the low point or high point of individual stocks in the early stage
Investors can set the stop loss position at the previous low point of individual stocks, that is, sell if the stock price falls below the previous low point, and set the stop profit position at the previous high point, that is, the stock price does not break through the previous high point, and the stop profit will be out.
2. Stop profit and stop loss at support level and pressure level
Investors can also set stop losses based on the support level of individual stocks, that is, when individual stocks fall below the support level below, they will sell their meat. Investors can find support levels according to the following methods: moving average, the gap where individual stocks jump upward; individual stocks rise Take profit and exit when limited by the upper pressure level.
3. Take profit and stop loss at the target price
Before buying a stock, investors should set a stop-profit and stop-loss range. For example, if the loss is 5%, they will stop selling. Or when buying a stock, they can calculate the room for the stock to rise, and then calculate the price of the stock according to the 1% of the upside space. /3 range to stop loss, for example, if the stock price has a 9% upside potential, you can set a 3% drop stop loss position.
At the same time, when investors set profit and stop loss positions, they can set multiple stop loss positions. For example, when the stock price falls by 3%, sell 1/3 of the position, and when the stock price falls by 5%, sell another 1/3 of the position. 3 positions, when the stock price falls by 8%, all are sold.