Master these six strategies to teach you how to stop loss in time:
1) Stop loss when bottom-fishing fails: Retail investors often like to bottom-fish on the left side, but they are often unwilling to stop loss after bottom-fishing fails, resulting in being trapped. If bottom-fishing fails and the price falls below the starting point of the stage, even if you sell wrong, you must sell to avoid greater losses.
2) Stop loss at key support level: In an upward market, the price rises to a high level and then stagnates, forming a chip-intensive area. Once it falls below the key support level, stop loss should be strictly implemented.
3) Stop loss in an upward market: Continuously adding positions in an upward trend is a winner's approach, but if the price falls below the previous high and the lowest price of the previous three K-lines, you should consider stopping adding positions or stopping losses.
4) Fixed stop loss: For transactions or heavy positions that cannot lose money, a fixed stop loss must be set. When the loss of a single transaction reaches 2% of the total position, stop loss should be considered.
5) Stop loss at moving average: If the market is judged based on the moving average support, when the price breaks through the key moving average and is confirmed, stop loss must be decisively implemented.
6) Trend line stop loss: In an upward trend, if the closing price falls below the trend moving average for two consecutive days, you must decisively reduce your position to stop loss. If you continue to hold on, when the price returns to the cost price, 80% of retail investors will sell out in panic.
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