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Data:2009-12-12 2:34
Stop-loss concept and significance of
The stock market will always be a market filled with both opportunities and risks, the stock market does not Changsheng generals, even the top players like Soros, but also often missed when. The face of the vagaries of the stock market, and only take the right strategy can only be invincible. Investors should have the courage to admit mistakes, once the facts prove that investment decisions are wrong, it should be corrected in order to maintain strength. Invest in the stock market operation mistakes occur very normal, the key lies in should try to avoid investment mistakes in a debilitating, otherwise, would not only protect this becomes very difficult (not to mention the defeat into victory by), will seriously affect the operation of investor psychology is not conducive to investors to play a normal operating level. Thus, in high-risk stock market, seeking higher returns on investment at the same time, how to effectively guard against risks, preservation of the strength has always been an investor must first be considered, so-called "留得é’å±±åœ? not afraid of no firewood." The stop is a noticeable error in the investment rate the only way to limit losses.
Stop-loss is a loss occurs when a investment to achieve a predetermined level, the timely liquidate out in order to avoid even greater losses. The goal is to limit losses at the time of investment mistakes in a smaller range. Stock investment and gambling an important difference is that the former through the stop-loss limit the loss of a certain range, at the same time be able to maximize the success of remuneration, in other words, stop making a relatively small price in order to try to gain greater benefits aså¯èƒ½. The stock market in the blood of countless facts show that an accident of investment mistakes can be fatal, but the stop can help investors saved the day.
Stop-loss is a concept, but also a plan, but also an operation. Stop idea is that investors have to stop from a strategic high level of awareness in the importance of investment in the stock market because the stock market in high-risk, first of all is to survive, can we further the development of the critical role of stop-loss is to allow investors to better survive. We can say that stop-loss investment in the stock market, one of the most critical concepts. Stop-loss program is defined as an important investment decisions prior to implementation, must be developed accordingly, how the stop-loss plan, stop-loss program the most important step is based on various factors (such as the important technical bits, or financial status, etc.) to decide on the specific stop-loss. Stop-loss operation is stop implementation of the plan is a significant investment in the stock market a step, if stop-loss plan can not be translated into a real stop-loss operation, stop-loss is still only on paper.
O'Neill and Warren Buffett may be different views on the stop-loss Do you still remember our last chapter introduced the stock market specifically Bole - O'Neill. As the world's stocks in the forest a master of the figure, O'Neill's stop-loss concept fairly representative. You may also not forgotten, O'Neal create their own set of investment guidelines, the most distinctive when the number of its successful stock selection model (CANSLIM), while the other two on the subject of this section - stop the. The second criterion is strict risk control rules, its core content is the "stop-loss rule": If a stock price fall below 7% of the purchase price below the market price to sell the firm. The third is the strict implementation of these two criteria of "iron" discipline. In O'Neill's investment philosophy, only the rise in the stock makes a good stock. Once he bought the stock have declined, we can consider the throw. He felt that the secret to overcome the stock market is that you must realize that you can not always be correct, but even if you only half, you win, it is important for each investment decision-making errors should be to reduce the losses to a minimum. O'Neill's a principle that any shares bought after the purchase price once the stock fell 7% below the market price on the firm to sell - never to make any speculation, and never make any illusions, and never hesitate!
O'Neill played a very appropriate analogy: If a car does not brake, you are willing to open the car do? However, the stock market is driving without the brakes of the cars of people who did a lot of people. Many investors think: You can not sell the stock had been down, otherwise a loss. O'Neal told them: if the stock price has fallen below your buy price, sell the stock, and did not let you lose money, because now you have a loss. Continue to hold the loss of the money stock and it has been loss continues, investors were most likely to commit, are often the most serious mistake. If in a bear market is not set stop bits, then Kuidiao 50%, or even 80% is also an expected, not only in the United States have occurred, even in the short history of the domestic stock market, but also by no means rare.
But in today's forest first expert shares of Buffett's investment philosophy, there is no "stop" is the word. The core of the principle stock market looks very simple: (1) what to buy stocks? (2) what price to buy? Buffett is used Zheliang Zhao, everyone seems to be two strokes, but Buffett's hands, their feet on unbeatable in the world. The highest state in any area are simple to understand, such as Einstein's famous mass-energy conversion theorem E = M C2, such a simple formula has revealed the laws of the universe, one of the most essential, which is commonplace Buffett is sufficient to winning seems to be similar to the two strokes in essence. Buffett's investment principles involved in investment decisions in the first step in the qualitative aspects, namely, those types of decisions should be buying shares in the company. å·´è²ç‰¹é€šè¿‡ä¼ä¸šçš„市场独å 性ã€æ¯è‚¡æ”¶ç›Šä¸Žæˆé•¿æ€§ã€å‡€èµ„产收益率ã€è´¢åŠ¡ç–略的ä¿å®ˆæ€§ã€ä¼ä¸šå¯¹ç¨ŽåŽåˆ©æ¶¦çš„使用ã€ä»¥åŠç®¡ç†å±‚çš„ç»è¥ç®¡ç†èƒ½åŠ›ç‰å¤šä¸ªè§’度æ¥å¯¹ä¸Šå¸‚to conduct assessments, and to choose the best companies worth investing. Buffett's interest in the enterprise is almost only two: "Consumer exclusive category" and "bridge fees category," the former refers to the production of brand-name companies such as Coca-Cola; the latter is able to provide essential services to enterprises, such as a place only newspaper media companies or securities companies, and sometimes it is not very clear line between the two, but have staggered.
Buffett's investment principles of the second step is to filter out companies worthy of investment estimate of its intrinsic value (which is a very complex one work in this no description), and wait for the price below the intrinsic value of this before buying. Buffett is not the pursuit of lucrative returns in the short term, but after a few years and even bought more than a decade to get a higher average investment rate of return (based on compounded basis), in general, Buffett's view, in a few years get 15% of the average investment rate of return is the minimum requirement. Waiting for an opportunity of its investment strategy in a very important part. Buffett the bull market in the face of strong momentum not tempted to consider only the near-madness in the market at the time of the hands of the stock throw; face was devastated by the bear market is waiting for an opportunity to attack, because it is based on less than the intrinsic value of listed companies to buy the best chance of the stock. Even after the purchase has been deep-set, and never stop to consider, because he firmly believed that his choice of the stock has a good texture, in the trend of re-turn a cow's rump only a matter of time before a profit. Buffett once said: When the stock market and money supply is insufficient, we have added to the large amount of money; and when the market is capitalized, we have very little part of it. Of course, we do not because the stock market was stabilizing agent follow this principle, we just believe it is the most reasonable and most profitable investment approach.
Two masters at the stop so clearly divided on this investment philosophy is indeed amazing. However, their overall investment style, such differences are very natural. O'Neill's stock-picking individual stocks is based on both fundamentals and technicals, but the general is characterized by a strong stock selection; while Buffett's stock selection is purely a fundamental departure from the individual stocks, and never take into account its technical side, their chosen stocks is characterized by good stock. O'Neill's time to buy shares in the stock price is often high, he is necessarily engaged in short-term operation; while Buffett is only the intrinsic value of the stock fell to its only considering the purchase of the following, he is often carried out by long-line investment . O'Neill's look at the stock every day hundreds of his understanding of the fundamentals of the stock selection is limited (this can be supplemented by technical and certification); while a small number of shares of Buffett's interest in its 40 many years of professional investment career, a major investment decision-making is only 20 times, 12 times more successful of which would enable him to win the now the undisputed status, he was selected to understand and grasp the fundamentals of the stock is a comprehensive and thorough (which is the sole basis for his stock picking). Thus, Buffett's "non-stop concept" and O'Neill's "stop-loss concept" is also inevitable. For the majority of domestic investors, we are proposing to establish a stop-loss concept, because: first, we talked about in the previous section, at this stage the domestic stock market is still not formed a long-term trends, not long-term investments; second , we believe that most investors to grasp the fundamentals of individual stocks is difficult to achieve Buffett's degree, let alone a listed company's "fraud" incident happened quite frequently. In order to control investment risk, maintain financial strength, we would advise investors or to listen to O'Neill's advice: in your car on the stock market installed brake bar - establish a stop-loss concept, development of stop-loss plan, the implementation of stop-loss operation.
How to Stop
The discussion focused on stop-loss concept, which is a concept and principles; next stop to look at the plan and stop operation, respectively, related to skills, experience, problems and will, discipline problems.
Stop-loss program has two main points:
(1) stop-loss basis. In general, the stop loss is based on the amount of stocks, that is, when a stock reaches a certain level of losses, it should sell at a loss out of the game; but can also be the basis for stop-loss to a investors in the funds market, which is often aimed at investors in terms of the entire stock portfolio, when the total amount of the loss exceeds a predetermined value, it should lighten up (less ownership) or clearance (full dispersal); stop can also be based on the stock market trend (ie, index), that when the stock fell below a predetermined point in place, they should lighten up, or clearance. In the development of stop-loss plan, investors should first consider its own investment position to determine the stop-loss basis.
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(2) stop bit is set, which is a key stop-loss program in general accordance with the relevant technical level and investors to determine the status of funds. However, in a different stop-loss basis, the set of stop-loss points of consideration have also been different. Stocks such as stop-loss, generally based on the technical bits and investors in individual stocks on the loss of the capacity to set, O'Neill was simply stating a loss of 7% for the stop-bit; right index stop, then under the market's technical position and the investors loss of the capacity to set up; of funds stop, then the losses are based mainly on the capacity of investors to set up. Regardless of what kind of stop-loss program, need to be considered than the loss of the bearing capacity and technical factors, the former is individualized, but also no objective standards, can be O'Neill's 7%, it can be your 10%; However, technical factors are related to skills and experience. Common method is to combine technical bits to set up stop-loss, for example, a certain individual stocks because of the good rumors recently hit a new high of 10.80 yuan (assuming that the high point of the original 10 million), investors in the process of technical callback to 10.20 yuan to buy may generally be considered a high point in the stock price fell below the original 10 yuan when the stop-loss, but the effectiveness of the Po Wei-based considerations, may determine the high point of a certain level below the original (such as 3% or 5%) of the price of stop bits (such as 9.70 yuan or 9.50 yuan), how to take what the range is often determined by the investors the experience and the Unit of understanding. In addition, the stop-loss rate (defined as stop-loss position and the distance from the purchase price) is to determine the daily price fluctuations should be considered to exclude the impact of stop-loss rate of short-term investments should be less than the long-term investment, the higher the risk of state of the stop-loss rate of should be less than the lower risk status. Stop-loss rate is too large, then the stop loss of original intent, so that an error has caused a great loss; but stop-loss rate is too small, it is likely to form a deadweight loss, because this case, the stop-loss easily in stock the normal fluctuations in touch. Can be seen to determine the appropriate stop-loss rate is almost an art.
The key is to stop operation of the firm will and discipline, and in no way should be to stop when the heart into a fluke, and never can use a variety of reasons to convince themselves to abandon or delay the implementation of stop-loss program must be fully implemented Trader Discipline The so-called "Strengthening the sense of discipline, the revolution will be victorious." The permission of some foreign stock markets, "stop list", that is the case of holding a certain stock may be issued such a direction to a single: When the stock price is below the specified price, the market price to sell immediately or sell limit order (respectively referred to as "market stop-loss orders" and "limit stop-loss orders"); such as allowing the next "stop list", then the best way to stop the operation at the first stop loss under a single (ie, the stock has been bought in the confirmation stop immediately after the next single). However, the domestic stock market is still allowed under the stop loss orders, which must depend on our will and discipline to complete the stop operation. Of course, the stop-loss program also can change with Quotes and proper adjustments, but it must be borne in mind that only in favorable circumstances can only adjust the stop-loss position, that is only allowed if the original investment decision-making right, the stock has a certain gains later, can only with the development of gradual adjustment Quotes scheduled stop bits, in ensuring the vested interests at the same time try to make more profit, which adjusted the "stop-loss program," sometimes referred to as "just make a plan" . However, we must not reduce the stop-loss position, as it is tantamount to not to implement (or at least to postpone the implementation of) stop, completely contrary to the original intention of stop-loss program; and improve the stop-loss will not lead to loss widened, on the contrary can only make a loss of reduce, or even to ensure a certain profit, there is no violation of the intention of stop-loss program.
Finally should be noted that, despite the stop-loss order to guard against the risk of investment in the entire stock market is a key measure, but it is after all just a defensive technologies can not be used as a substitute Quotes analysis and other investment techniques. The purpose is to avoid its evils stop, while the stock market benefits or reduce the ultimate aim is that only high-quality sub-trend research, market timing, stock picking and other techniques to achieve profit objectives. This is like the relationship between the defensive and offensive football, the only way the whole entire defensive attack, before being decisive battlefield.
Stock brake - stop-loss concept, planning and operation of
Stop-loss concept and significance of
The stock market will always be a market filled with both opportunities and risks, the stock market does not Changsheng generals, even the top players like Soros, but also often missed when. The face of the vagaries of the stock market, and only take the right strategy can only be invincible. Investors should have the courage to admit mistakes, once the facts prove that investment decisions are wrong, it should be corrected in order to maintain strength. Invest in the stock market operation mistakes occur very normal, the key lies in should try to avoid investment mistakes in a debilitating, otherwise, would not only protect this becomes very difficult (not to mention the defeat into victory by), will seriously affect the operation of investor psychology is not conducive to investors to play a normal operating level. Thus, in high-risk stock market, seeking higher returns on investment at the same time, how to effectively guard against risks, preservation of the strength has always been an investor must first be considered, so-called "留得é’å±±åœ? not afraid of no firewood." The stop is a noticeable error in the investment rate the only way to limit losses.
Stop-loss is a loss occurs when a investment to achieve a predetermined level, the timely liquidate out in order to avoid even greater losses. The goal is to limit losses at the time of investment mistakes in a smaller range. Stock investment and gambling an important difference is that the former through the stop-loss limit the loss of a certain range, at the same time be able to maximize the success of remuneration, in other words, stop making a relatively small price in order to try to gain greater benefits aså¯èƒ½. The stock market in the blood of countless facts show that an accident of investment mistakes can be fatal, but the stop can help investors saved the day.
Stop-loss is a concept, but also a plan, but also an operation. Stop idea is that investors have to stop from a strategic high level of awareness in the importance of investment in the stock market because the stock market in high-risk, first of all is to survive, can we further the development of the critical role of stop-loss is to allow investors to better survive. We can say that stop-loss investment in the stock market, one of the most critical concepts. Stop-loss program is defined as an important investment decisions prior to implementation, must be developed accordingly, how the stop-loss plan, stop-loss program the most important step is based on various factors (such as the important technical bits, or financial status, etc.) to decide on the specific stop-loss. Stop-loss operation is stop implementation of the plan is a significant investment in the stock market a step, if stop-loss plan can not be translated into a real stop-loss operation, stop-loss is still only on paper.
O'Neill and Warren Buffett may be different views on the stop-loss Do you still remember our last chapter introduced the stock market specifically Bole - O'Neill. As the world's stocks in the forest a master of the figure, O'Neill's stop-loss concept fairly representative. You may also not forgotten, O'Neal create their own set of investment guidelines, the most distinctive when the number of its successful stock selection model (CANSLIM), while the other two on the subject of this section - stop the. The second criterion is strict risk control rules, its core content is the "stop-loss rule": If a stock price fall below 7% of the purchase price below the market price to sell the firm. The third is the strict implementation of these two criteria of "iron" discipline. In O'Neill's investment philosophy, only the rise in the stock makes a good stock. Once he bought the stock have declined, we can consider the throw. He felt that the secret to overcome the stock market is that you must realize that you can not always be correct, but even if you only half, you win, it is important for each investment decision-making errors should be to reduce the losses to a minimum. O'Neill's a principle that any shares bought after the purchase price once the stock fell 7% below the market price on the firm to sell - never to make any speculation, and never make any illusions, and never hesitate!
O'Neill played a very appropriate analogy: If a car does not brake, you are willing to open the car do? However, the stock market is driving without the brakes of the cars of people who did a lot of people. Many investors think: You can not sell the stock had been down, otherwise a loss. O'Neal told them: if the stock price has fallen below your buy price, sell the stock, and did not let you lose money, because now you have a loss. Continue to hold the loss of the money stock and it has been loss continues, investors were most likely to commit, are often the most serious mistake. If in a bear market is not set stop bits, then Kuidiao 50%, or even 80% is also an expected, not only in the United States have occurred, even in the short history of the domestic stock market, but also by no means rare.
But in today's forest first expert shares of Buffett's investment philosophy, there is no "stop" is the word. The core of the principle stock market looks very simple: (1) what to buy stocks? (2) what price to buy? Buffett is used Zheliang Zhao, everyone seems to be two strokes, but Buffett's hands, their feet on unbeatable in the world. The highest state in any area are simple to understand, such as Einstein's famous mass-energy conversion theorem E = M C2, such a simple formula has revealed the laws of the universe, one of the most essential, which is commonplace Buffett is sufficient to winning seems to be similar to the two strokes in essence. Buffett's investment principles involved in investment decisions in the first step in the qualitative aspects, namely, those types of decisions should be buying shares in the company. Warren Buffett's market exclusivity through the business, earnings per share growth, return on equity ratio, financial strategy, conservative, business-to-use of after-tax profits, as well as the management of the operation and management capabilities and other terms listed to conduct assessments, and to choose the best companies worth investing. Buffett's interest in the enterprise is almost only two: "Consumer exclusive category" and "bridge fees category," the former refers to the production of brand-name companies such as Coca-Cola; the latter is able to provide essential services to enterprises, such as a place only newspaper media companies or securities companies, and sometimes it is not very clear line between the two, but have staggered.
Buffett's investment principles of the second step is to filter out companies worthy of investment estimate of its intrinsic value (which is a very complex one work in this no description), and wait for the price below the intrinsic value of this before buying. Buffett is not the pursuit of lucrative returns in the short term, but after a few years and even bought more than a decade to get a higher average investment rate of return (based on compounded basis), in general, Buffett's view, in a few years get 15% of the average investment rate of return is the minimum requirement. Waiting for an opportunity of its investment strategy in a very important part. Buffett the bull market in the face of strong momentum not tempted to consider only the near-madness in the market at the time of the hands of the stock throw; face was devastated by the bear market is waiting for an opportunity to attack, because it is based on less than the intrinsic value of listed companies to buy the best chance of the stock. Even after the purchase has been deep-set, and never stop to consider, because he firmly believed that his choice of the stock has a good texture, in the trend of re-turn a cow's rump only a matter of time before a profit. Buffett once said: When the stock market and money supply is insufficient, we have added to the large amount of money; and when the market is capitalized, we have very little part of it. Of course, we do not because the stock market was stabilizing agent follow this principle, we just believe it is the most reasonable and most profitable investment approach.
Two masters at the stop so clearly divided on this investment philosophy is indeed amazing. However, their overall investment style, such differences are very natural. O'Neill's stock-picking individual stocks is based on both fundamentals and technicals, but the general is characterized by a strong stock selection; while Buffett's stock selection is purely a fundamental departure from the individual stocks, and never take into account its technical side, their chosen stocks is characterized by good stock. O'Neill's time to buy shares in the stock price is often high, he is necessarily engaged in short-term operation; while Buffett is only the intrinsic value of the stock fell to its only considering the purchase of the following, he is often carried out by long-line investment . O'Neill's look at the stock every day hundreds of his understanding of the fundamentals of the stock selection is limited (this can be supplemented by technical and certification); while a small number of shares of Buffett's interest in its 40 many years of professional investment career, a major investment decision-making is only 20 times, 12 times more successful of which would enable him to win the now the undisputed status, he was selected to understand and grasp the fundamentals of the stock is a comprehensive and thorough (which is the sole basis for his stock picking). Thus, Buffett's "non-stop concept" and O'Neill's "stop-loss concept" is also inevitable. For the majority of domestic investors, we are proposing to establish a stop-loss concept, because: first, we talked about in the previous section, at this stage the domestic stock market is still not formed a long-term trends, not long-term investments; second , we believe that most investors to grasp the fundamentals of individual stocks is difficult to achieve Buffett's degree, let alone a listed company's "fraud" incident happened quite frequently. In order to control investment risk, maintain financial strength, we would advise investors or to listen to O'Neill's advice: in your car on the stock market installed brake bar - establish a stop-loss concept, development of stop-loss plan, the implementation of stop-loss operation.
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