Category: Money tips Release Date: 2006-01-15
Some investors believe that stop-loss is a bear market strategy, the strong do not need to stop, this is a wrong concept. In fact, the strong need to stop, when stocks peaked signs appear, or hold a non-mainstream varieties, as well as adverse economic decline in the stock needs to stop. Especially in the fundamentals, such as major changes in market conditions or investor's analysis of the Quotes major mistakes, investors still need to come up with ton output capacity determination. Stop The specific skills:
First, the preparation before the operation. Stop-loss as a speculative market to control the risk of loss of a powerful tool for enlargement, in particular the implementation process to pay attention to is: absolutely can not wait until a loss has occurred before considering what standard should stop, this is often too late. Must be bought before the investment is necessary to consider: If the error should be to determine how to deal with, and to develop detailed plans and stop-loss stop-loss criteria, the only way to being prepared, once they discover judged mistakes, in order to decisively stop. Will not blow in the sudden helpless, it will not be a moment of deep contingency is less than sets, but will not long bear the more sets of the way deeper.
2, operate in its implementation. Based on pre-established stop-loss programs and stop-loss standard, once the stock to form Powei momentum, we must resolutely stop. Even if the judge mistakes, losses caused by stop-loss tend to be small, it does not stop the depth of the results are often stuck, and even loss of a huge flesh. Some investors buying the stock, always enthusiastic vision of how to make money, but very few are willing to think about if there is a loss of how to do? Much less well prepared to cope with failure, once a loss, they know what to do, and hesitated to stop until aware of the time, but have missed the best time to stop. Therefore, the stop-loss can not be timely and decisive action led to stop the failure of the main reasons, investors in the implementation of stop-loss operation to overcome the need to pay attention.
3, the operation after the risk control. Many investors, after a successful stop-loss, often in the rush to make up for stop-loss caused by errors, once again caught in blind bargain-hunting situation, often the stock market will be totally false in a wide variety of technology at the end, policy or market at the end of the end of such hold-up . In fact, the application of stop-loss policy is weakening the market's overall trend has emerged signs of a contingency strategy, in such a market environment, investor losses in order to rush, take frequent short-term operation, will be very easy to increase the investment mistakes probability. Therefore, investors fled to the top or success in the smooth stop, do not immediately or re-buy bargain-hunting, it is important to be judged a clear trend in the market operation.
