Follow-up of stop-loss set Money Tips

Category: Money tips Release Date: 2006-11-06

Follow-up of stop-loss set

First, the basic concept of

When the stock has been moving in the direction of profit after exercise, but the profitable movement in the stock before the completion of a partial on the bottom or below prior to the operation of the market situation has given some danger signals, this time it is necessary to pro-active put an end to the whole transaction to lock in profits. Can be seen, with protective stop-loss obviously different, follow-up of stop-loss is designed for short-term trading profits may sometimes end in a medium or even long-term market trend at the top, especially in the escape of an extraordinary campaign, to follow up the advantages of stop-loss is even more prominent, due not only to ensure that the higher returns, but also saves valuable time and increasing market opportunities.

"Machines can not be located, not in the set." Despite the tricky transformation of yin and yang can be detected, two different mechanisms also have rules to follow, but the stop is not in any case always set, even when very delicate, in actual combat may not be able to smooth implementation, such as the achieve our goals the more common transient and continuous immeasurable Change bits stopping time, and this indeed is the time to follow up themselves to the full stop!

Second, target-bit follow-up of stop-loss

Price patterns occurred, the reasonable ratio between risk and reward can be expected is usually the basic set, and is expected in the opposite direction, you can control the protective stop-loss risk, and achieve the desired goal Zexu ensure that the benefits stop using follow-up.

1, the trend channel, stock return and the line through channels to close at the channel (such as the North Fifth Ring June 26, 2001), or near the channel line shift occurs (such as the Beijing Urban Construction July 16), usually will become the trading opportunities;

2, the stock in more key resistance / support level easily repeated, that is, a local at the end of the last / top ratios, such as 0.5, etc. or significant change in the direction of the time, when the stop-loss for the implementation of follow-up time, just as Chunlan Share July 20, 2001;

3, form an important measure of increases in their magnification in the vicinity, such as Lujiazui, in mid-July this year, breaking a large order form, one month later in the form of a high degree of exactly meet resistance at a fold down; Hailigufen breakthrough in early October last year, took nearly 7 months After finishing the first shoulder, the stock has at the end of December last year and this year by the end of May callback, the biggest gains were slightly larger form of a high level of 2 times. In addition, also be noted that the intersection form an important trend line or a different point of intersection of time and price in the prophetic.

Third, speed up the run-time of follow-up of stop-loss

When the stock reached after the form of range, or break through the channel and to accelerate the run-time, follow-up of stop-loss may be located in the form of a high level of two times, three times or the second, third Road extension parallel lines in the vicinity, but as a general rule, speed run will result in stock prices and short-term moving average, such as 5 days or 2 weeks of the deviation from the average high rate (eg 15% or so), the line than the trend line usually signals a much earlier, as long as income the first day / week closing price stop-loss below 3% can be implemented, that is, at this time do not have to wait until close to the longer moving averages take action to escape movement can pay attention to time-sharing (eg, 60 minutes) situation.

4, significantly heavy volume during the follow-up of stop-loss

1, the formation of abnormal trading volume upside without a breakthrough, the cancellation of the original protective stop-loss, the closing price of approximately 2.5% under the Department as a follow-up of stop-loss;

2, channel suddenly put massive breakthrough before a local high and low points, and innovative value of the former is undoubtedly a kind of warning and threats, especially where there are gaps or single-day reversal to be more reliable if it continues to move forward without a big bang, you can close or below the 2.5% of the Division, as the stop-loss, until another outlet or top of the signal occurs, such as road and bridge building massive release July 17 rose, 20, and then pierce heavy volume after the steep channel line meet resistance.

5 to follow up on the principle of stop loss setting

To Wujiang Electric Power, for example, the Unit completed a large head and shoulders at the end of this year, early in June began to put massive upside, the biggest rise up to form a high level of 4.2 times to achieve a high degree of multiple forms when there is more than repeated, and short-term moving averages deviate from the rate of down is also a warning signal, June 27 meet resistance heavy volume, 7 months later, below the short-term moving average, which hit a follow-up stop. Can be seen to follow up the key is the use of stop-loss set the pace of changes in market operation, its price should be rising over time and can not move down, following the withdrawal of the covering high while in the opposite direction. In other words, time is everything, they would rather sacrifice some potential profit, nor the risks involved in order or waiting for the arrival. To lead a better life in the risk market, we must give up chances, despite the broader market basically determines the operational status and distribution of the use of funds, but it set the stop loss is almost no impact. (Beijing's first card-Yun springs)