1. How to use trailing stop loss

Stop loss refers to setting a fixed stop loss level, and the stock price drops to this level and then sells. But this is often the case. After we bought the stock, the stock price rose, and the gain was good, and we also made a certain profit. At this time, the stock price is far away from the previous stop loss level, in order to avoid the subsequent stock price decline If there is a loss, we will increase the stop loss at this time. For example, the previous stop loss is 10% below the buying price. After we make a profit, we will adjust the stop loss to the buying price, so as to ensure the cost Gold is absolutely safe. When the stock price continues to rise to a certain level, we will raise the stop loss again. This is the trailing stop loss, let’s take an example to see its benefits.

How to use trailing stop loss

Xiao Ming bought 1,000 shares at a price of 10 yuan, and the stop loss was set at a price of 9 yuan. After buying, the stock price rose by 10% and became 11 yuan per share. At this time, Xiao Ming increased the stop loss position. Adjusted to the purchased price of 10 yuan, and then the stock price continued to rise well and rose by 10%. At this time, Xiao Ming raised the stop loss again and adjusted it to the price of 11 yuan, thus locking in 10% of the profit. As long as the upward trend of the stock price does not change, Xiao Ming will continue to hold the stock until the stock price drops and touches his last stop loss as an upward sell, thus completing a profit.

If we use the conventional stop loss method, the stock price has risen to a certain level, and we have not sold it. When the stock price falls, we do not touch the stop loss and do not sell, then we will not make money in this transaction, and we will also lose 10 %. Of course, this situation can only be applied when the stock price rises after the purchase. If the stock price drops after the purchase and touches the first stop loss level, you should also sell decisively through this flexible method. , On the one hand, we can reduce our losses, on the other hand, we can ensure the maximum profit.

  1. How to use mobile take profit

The use of mobile stop-loss is actually a bit like mobile stop-loss. After the profit exceeds the stop-profit level, the upward trend of the stock price has not been destroyed, and it is still in a good upward trend. At this time, we can continue to hold and wait until the stock price Fall back to the standard time set by yourself, and then sell.

However, mobile take profit is relatively a bit complicated, so when setting, we need to consider three factors:

  1. After the stock price drops to a certain level, the profit must be taken. For example, after the stock price drops by 5% after a high point, it will be sold unconditionally. Of course, this number is just an example. Judging by the actual situation or the actual situation of the current market;
  2. Take profit when the stock price drops below an important moving average. Once the stock price drops below an important support level, it must take profit immediately;
  3. Decisively stop profit when the stock price shows a clear top pattern and stagflation.

Relatively speaking, the mobile stop loss operation is a bit simpler, and the mobile stop profit requires us to have certain technical analysis capabilities. If you feel that you cannot judge the quality of the market and the top of the stock price, it is best not to use this In this way, set a fixed take profit level.