Category: Money tips Release Date: 2006-05-04
Some of the recent broad market stocks fell suddenly peaked trend, making investors appeared less certain contingency losses, we can see that stop-bit setting is very important. Stop bit setting is based on a certain frame of reference as a standard point of reference, set the general based on the following points:
1, according to degree of loss of settings, such as: When the price below the purchase price of 5% or 10% stop-loss is usually short-term speculative buying of the stop-loss set down by 2% to 3%, while investment-type long-term stop bit set bought in a relatively larger decline in the proportion.
2, 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.
3, according to technical indicators support bit set, mainly: â‘?10, 30 or 125 day moving average; â‘?stock beneath the upper Bollinger Band trajectories; â‘?MACD a green column line; â‘?SAR below the turning point downward; â‘?long-short to medium term, William, when all the targets is higher than -20; â‘?When WVAD of 5 antennas beneath WVAD 21 antenna; â‘?When the 20-day moving average PSY greater than 0.53 pm, PSY 5-day moving average line wear PSY 20-day moving average.
4, according to the history of great significance to the key location settings, such as: the history of publishing a major policy position.
5, according to K-line form to set frame of reference, mainly: â‘?the trend line of the tangent; â‘?head and shoulders top or arc shape neckline top of the head position, etc.; â‘?up channel for the next track; â‘?the edge of the gap.
6, according to an integer stock price settings, 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.
7, according to transaction-intensive settings, 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. If 93 to 94 years 777 iron at the end.
8, according to their own experience, the psychological price setting as a stop-loss. When investors pay attention to certain long-only stocks on the stock of a deeper understanding, in accordance with the psychological price setting stop bits, are often very effective. (Wai)
