Category: Money Tips Date: 2006-10-04
Yinhua principles and stop the crocodile technology convergence to form their own "Crocodile stop Act." The world's greatest trader has a simple and practical trading rule - "Crocodile principles." Profitable long-term stability is reached before all of the investors are going through this process, and repeated training on the level of understanding of this principle, not through wind and rain, how can rainbow?
The so-called "crocodile in principle", which from the crocodile swallowed by: prey, the more trying to struggle, crocodile harvest more. Assume that a crocodile bite your feet, and wait for your struggle. If you arm trying to break away on their own feet, then it's mouth it will also bite you in the foot and arm. The more you struggle, the deeper the depression. In the event that alligator biting your feet, be sure to remember: the only chance of survival is to sacrifice a leg.
Securities market is a high-risk, high-yield market. As long as investors enter the market, is facing the possibility of a loss in access to investment income, before capital's security is first. The stock market there are investment professionals and short-term expert, but never heard of which is earn, instead of losing. Market, the most important thing is to survive, followed by profit. In the actual transaction for investors to firmly establish the concept of stop-loss, strengthening stop-loss awareness, effective control and stop-loss trading technology.
Stop Technology
Stop-loss techniques can be divided into two major categories: the fixed value of technology and technology-based stop-loss stop-loss techniques.
A fixed value of stop-loss technique
According to different risk preferences of the purchase price when the losses of up to 3%, 5%, 8%, or greater value is set at a fixed stop-loss.
2, technical stop-loss techniques
1) The stop-loss method of indicators. According to technical specifications issued by the instructions to sell, as a stop signal, mainly including: MACD line and the formation of a green cylindrical Sicha; KDJ send Sicha signal; SAR below the turning point and turn down the green and so on.
2) The trend of tangent stop method. Including the stock price fell below the trend line of the effective tangent; stock effective break point line Gann 1 × 1 or 2 × 1 line; below the rise in stock prices and effective channel for the next track and so on.
3) The form of stop-loss method. Including the price break head and shoulders top, M head, circular head shape of the neckline top and other places; share prices gapped down to break through the gap and so on.
4) K-line stop-loss method. There are two folders, including a yin-yang, decapitated hay cutter, and the Shooting Star, Evening Star, wearing a head broken legs, three crows the typical peak of the K-line and combination.
5) The average stop-loss method. Generally speaking, MA10 (10-day moving average) can be maintained short-term trends, MA20 or MA30 can maintain medium-term trend, MA120 (half line), MA240 (year-line) can be maintained long-term trends. If it is a short-term guest, you can MA10 as a stop-loss point; if it is long-term buyers, can refer to the MA120, MA240 as a stop-loss point. Investors who are on the rise after the channel bought the next track, waiting for the end of the upward trend re-open positions, and stops are located in a relatively reliable moving average line in the vicinity.
6) The period of time stop. Stop the time period is a structured technique of stop-loss method, which uses the price imbalance between the period of time to carry out the stop setting. That is, when prices had not reached the equilibrium price means the price of balance, appropriate measures must be carried out stop.
