Category: Money Tips Date: 2006-07-31
Recently, many stocks peaked down trend emerged, making the investor less than the loss contingency is not small, can be seen throwing a timely manner is very important to high. But when a high throw to a certain point of reference as the standard, setting the general frame of reference based on the following points:
According to the highest price in comparison with the recent, when the stock price fell from the highest price reached a certain extent, when sold, if the investor is loss-making state at this time is called stop-loss; in a profitable state called only win. This method is used in most cases, only win. Fall only win when you reach the number of shares depends on the active degrees, the more active stocks should set up bigger margin.
Support level based on technical indicators to set stop-loss, such as 10, 30 or 125 day moving average line for the stop-loss; MACD first time in the green column line; or based on historical significance on the key position of settings such as: the history of publishing a major policy position.
K-line form can also be set up under the frame of reference, are: the trend line of the tangent; head and shoulders top or arc shape neckline top of the head and other places; up channels for the next track; the edge of the gap and so forth.
Actual combat can be set according to the stock price of just profit-bit integer, such as: 10 yuan; 20. This approach is not much scientific basis, mainly due to an integer off the psychological price of the investing public have a certain role in support and resistance.
Some people also set up, according to transaction-intensive areas only surplus places, such as: moving the cost of the distribution of the peak area. Because the transaction-intensive areas of the stock price will have a direct role in support and resistance. The base of a solid breakdown, often from a strong support area will be transformed into a strong resistance area.
Sometimes the experience can also be set up according to their own psychological make up profit price, stop-loss. When investors pay attention to certain long-only stocks on the stock of a deeper understanding, in accordance with the psychological price set only the surplus, stop-loss position, it is often very effective.
