(This article is compiled by the official account Yuesheng Guide (yslc688), for reference only and does not constitute operational suggestions. If you operate by yourself, pay attention to position control and risk at your own risk.)
First of all, you must know the three major misunderstandings of stop loss:
One of the misunderstandings:
Not stop loss
Why is it incorrect to stop loss without stop loss?
If it is actually operated, there will be some errors. It is natural to make a profit if you do it right, but what should you do if you do it wrong? The only choice after making a mistake in the market is to admit the mistake immediately and correct the mistake, and stop loss is the key way to admit the mistake and correct the mistake.
All transactions should not be regarded as a desperate gambling, but a molecule in the chance game. Not implementing a stop loss operation means refusing or not having the courage to admit your mistakes, unconsciously, you may feel that you will not make mistakes, or you may be lucky. According to Murphy's law, "If something may become bad, then this possibility will become a fact." Small mistakes will become big mistakes, small losses will become big losses, and eventually become out of control.
From another perspective, it is difficult for every investor to live to 500 years old, and use most of the time to wait for a loss position to become a profit; each investor's own funds are limited and cannot support endless losses. In the face of investors who are incorrect and not correct, it is obvious that they have already made the plan of "really wanting to live another 500 years", and have already dug up the pit and finally buried themselves.
stop loss may be a new error, it is just possible, but not stop loss is definitely a mistake. The two evils are the least. Although most people are unwilling to bear certain losses, considering the limited time and capital, it is obviously wise to obtain the positive effect of global variables with small local losses.
Misunderstanding 2: Stop loss
Most beginners who are new to speculators usually learn lessons after suffering major losses because they do not stop loss, regard stop loss as an iron discipline, so they lead to another extreme and are deeply trapped in a new misunderstanding: Stop loss stolen. The serious consequences of
random stop loss are obvious, and no account can withstand long-term continuous stop loss. Faced with the account net value that is getting thinner and thinner the more you stop, investors will return to the old ways of not stop loss again and shake repeatedly between stop loss and not stop loss.
Investors must jump out of the logical thinking barriers of stop loss and non-stop loss to find the answer to the question. What is the purpose of stop loss? The purpose of stop loss is to manipulate risks, but it is necessary to see clearly that stop loss is not the only way to control risks. The traps in the speculative mystery are all kinds of, and the mistakes we make and the risks we encounter are all kinds of. Only by rectifying the source, making fewer mistakes and taking fewer risks can we reduce the frequency of bottom-end stop loss, and make each stop loss necessary and worthwhile, not fearless and self-harm.
Misunderstanding 3: Sometimes stop loss sometimes does not stop loss
After realizing the importance of stop loss and also tastes the consequences of random stop loss, investors still have another pitfall to go, that is, sometimes stop loss sometimes does not stop loss. When the loss is within the acceptable range, for example, if the loss is 30 points, choose a stop loss, but if the stop loss increases to 100 points, it will not stop loss. This is actually a decision on whether to stop loss is based on the size of the loss, and the appropriate approach is based on whether you are doing something wrong depends on whether you are stop loss.
stop loss is not a magic pill, it is just a safe belt and parachute on the investment path. Not wearing a seat belt does not mean that you will definitely touch the car. Fastening a safety belt will make the investment more stable. Stop loss is necessary, but it can only be used as a means of being wary of. The misuse and misuse of stop loss will only cause harm.
For most investors, only by making fewer mistakes, reducing frequency, operating at a small position, and implementing practical operation discipline can we upgrade from amateur to professionalism and embark on the path of long-term stability and profitability.
Secondly, you need to know that position control is very important:
6 golden rules for position management
1, isolation risks
? In fact, it is the "don't put the eggs in the same basket" that we have heard. Here, isolation is to manage the money invested and the family assets separately. The specific operation is to create two "accounts" (combined with your own situation, sometimes there can be several, such as another one for children's education funds). The key is to manage the investment funds separately from the money used in family life, such as food, clothing, housing and transportation, pension, and children's education. The advantage of
is that if the investment loss is serious in time, it will not have too much impact on the family's life.
2. Don’t have a full position
The risk of full position is what we have been saying. Many people are actually just betting on the full position and betting on the betting. If you bet on the betting, you can make a big profit, but what if you bet on the wrong bet? That means you lose all the market! So you must learn to build positions in batches and not invest all your money in one or a type of stock. Especially some types of stocks have industry characteristics or are easily affected by the market environment and have great fluctuations. When you buy all of these stocks, if the market is not good, then all stocks may fall, and the risk is too great. Diversified investment is the way to survive in the stock market.
3. Stop loss in time
If you regard investment behavior as driving, then stop loss is like an investment seat belt, which can "help" at critical moments. When the stock price falls, many retail investors always hold the mentality that it is not really a loss if they don’t sell. They hold them in their hands and are unwilling to cut their losses. Finally, they watch their capital shrink and finally they can’t bear it and then they lose the market. They suffer heavy losses. In fact, the correct way is to set a stop loss point for yourself when you start investing. When you reach this line, you must sell decisively and lose a little protection principal. It is better than being deeply trapped in the end.
4. Don’t easily short positions in the bear market
We mentioned above that stop loss is a strategy to protect principal in investment. However, investors are too timid and stay away from stocks when the bear market comes. They are familiar with it. This is a good time for investment, because many stocks are in the undervalued stage. But one thing to note is that even if you can find many good investment opportunities in a bear market, you should also be careful not to have heavy positions. It is still recommended to build positions in batches.
5. Strictly abide by discipline
The discipline here refers to the discipline you set for investment, including the ratio of position building, stop-profit and stop loss, etc. Don’t use your subjective will to interfere with your own operational behavior.
6. Don’t stop learning
The reason why many retail investors keep losing money is because they do not have a systematic understanding of stocks and are just following the trend. Even the stock god Buffett has learned from the essence of investment philosophy of many investment experts such as Graham , Keynes , Fisher , and then it has become a generation of stock god. Therefore, only by constantly learning relevant knowledge, learning from others' strengths, brainstorming, and finding investment methods that suit you can gain more in your stock market.
A set of trading systems with similar success rates of 20% plus capital management position control. It's the way to win. Enter the market at half of the position at the entry point, increase the position by 40%. If it falls by 5%, cut off half of the position. As the saying goes, small losses and big profits are enough to make a fortune once.
The following introduces a fund management strategy related to increasing the investment - perhaps it should be called a "living life" fund management strategy, because the content it contains is not just as simple as increasing the investment.
Assuming there is an account of 100,000 yuan now, with a short position, our goal is to make it more than 200,000 yuan (double).
First, divide the funds in this account into 5 parts, each part is called a trading unit, which means that 20,000 yuan is invested in each trading unit.
Then, we will complete the operation from 100,000 to 200,000 in 7 steps.
In each step, the stop loss amount is 10% of the total amount of the invested money when performing this step. If it exceeds 10%, stop loss unconditionally.Whether this 10% includes transaction fees depends on personal preferences. My personal suggestion is to include it.
Step 1:
Step 1 operation only invests one trading unit - 20,000 yuan. The total investment at this time is 20,000 yuan, and the holding ratio is 20,000/100,000=20%.
Because the scheduled stop loss is 10% of the invested funds, the maximum stop loss amount is 2,000 yuan. When the loss exceeds 2,000, the unconditional stop loss is. At this time, the proportion of the stop loss amount to total assets is 2000/100000=2%.
Carefully prepare this 20,000 yuan order. When the profit reaches 20%, that is, after making 4,000 yuan, you can move to the next step. (At the end of step 1, the total assets have become 104,000, and 4% of the profits have been made relative to the initial total assets) If this step is not smooth, the final stop loss will leave the market, and there is still the remaining 90,000 yuan as a backing, you can re-enter the market with a trading unit.
Step 2:
When there is already a profit in step 1, we start to increase our investment.
is now invested in a new trading unit. At this time, the total amount of funds invested in the transaction is 40,000 yuan, and the holding ratio is 40,000/104,000=38.46%. The maximum stop loss amount is 4,000, accounting for 4,000/104,000=3.85% of the total assets. If the loss exceeds this value, the loss will still be unconditionally stopped.
Note that in step 1, we have made a profit of 4,000 yuan. As long as we strictly stop the loss, the original capital will hardly be damaged. When this operation makes another 20%, that is, 40,000×20%=8,000, you can enter step 3. (At the end of step 2, the total assets have become 112,000, and 12% profit has been made relative to the initial total assets)
It should be emphasized here that if a stop loss exit occurs in step 2, and the total assets fall below 104,000 at the end of step 1, you must return to step 1, and only one trading unit is invested until the total assets return above 104,000, and then proceed to step 2 again.
Step 3:
If step 2 goes well, now we will continue to increase the investment in
and add another trading unit. The total amount of funds invested has reached 60,000 yuan, and the holding ratio is 60,000/112,000= 53.57%.
maximum stop loss amount is 6000, accounting for 6000/112000=5.36% of total assets.
Note that in step 2 we made a profit of 8000, and after the first two steps were completed, the total profit has reached 12000. As long as the loss is strictly stopped, the loss of 6000 will not have any impact on the original capital.
When this operation makes another 20%, that is, 60000×20%=12000, you can enter step 4. (At the end of step 3, the total assets become 124,000, which has made 24% profit relative to the initial total assets)
is the same as reminded in step 2. When there is a loss in step 3 operation, if the total assets of the account fall back to between 104,000-112,000, it will return to step 2, and the holding amount will be reduced to two trading units;
If the stop loss is not firm or other unexpected situations occur, the loss is serious and falls below 104,000, you can only return to step 1 and start again.
Steps 4, 5, 6, 7:
invests 4 units, a total of 80,000, the holding ratio is 80,000/124,000=64.52%, the maximum stop loss is 8,000, accounting for 6.45% of the total assets, and 20% of the profit = 16,000 can enter step 5. (At the end of step 4, the total assets are 140,000, and the profit is 40%)
is invested in 5 units, with a total of 100,000, with a holding ratio of 100,000/140,000=71.43%, the maximum stop loss is 10,000, accounting for 7.14% of the total assets, and 20% of the profits = 20,000 can enter step 6. (At the end of step 5, the total assets are 160,000, and the profit is 60%)
is invested in 6 units, with a total of 120,000, with a holding ratio of 120,000/160,000=75%, with a maximum stop loss of 12,000, accounting for 7.5% of the total assets. After making a profit of 20% = 24,000, you can enter Step 7. (At the end of step 6, the total assets were 184,000, and the profit was 84%)
invested 7 units, totaling 140,000, with a total holding ratio of 140,000/184,000=76.09%, with a maximum stop loss of 14,000, accounting for 7.61% of the total assets, and a profit of 20%=28,000... So far, our total assets have become 212,000, and at this time, we have made 112%, and the funds have doubled.
"Eight Principles" for low-level positions
achieves the expected "magical effect" through correct positions replenishment operations. It is necessary to enhance the pertinent nature of daily operations and properly solve problems such as "no money to supplement", "no courage to supplement" and "no compensation", but also to grasp the principle of actual positions and firmly grasp the initiative of positions replenishment operations in your own hands.The principles that must be grasped in the operation of replenishing positions are summed up in total, namely the principle of "eight supplements and eight non-compensation":
1 is . The market : make up when stabilizing, and unstable do not make up. If the entire market is in the initial decline after the peak, and the market neither stops falling nor stabilizes, it will only increase the "subject to traps" of chips and accelerate the "shrinkage rate" of market value.
The second is stock nature: familiar supplements, and unfamiliar ones. If you are not familiar with the fundamentals and stocks of stocks participating in the replenishment, it will increase the blindness of replenishment operations, and you will have countless thoughts and lack confidence. Of course, it is difficult to achieve ideal results if you replenish your position like this.
The third is performance: good compensation, bad compensation. Generally speaking, investors who are preparing to replenish their positions should first choose companies with good performance to replenish their positions. In principle, companies with performance problems cannot increase their positions. Although from the final result, some problematic companies do not rule out the possibility of a sharp rise in stock prices, from a prudent perspective, it is still not advisable to participate in the replenishment of such problematic companies.
Fourth, trend: make up for the rise and not fill the break. From a technical perspective, replenishing positions emphasizes the principle of stability. Therefore, for some companies that have been on an upward channel for a long time and have relatively stable secondary market trends, when the stock price suddenly turns or even shows signs of breaking, they should give up replenishing positions. On the contrary, for companies that have long-term declines and underperforming, they can follow up in time when signs of rising.
Five is the rise and fall: when the big drops fall, if the big drops fall, if the big rises fail. When it comes to replenishing positions, you generally choose to buy when the relevant varieties fall sharply or even sharply. It should be noted that some companies with huge gains and profits often use the market to start shipping. Investors who cannot identify and improperly replenish their positions may also become unfortunate high-level buyers when the stock falls sharply. Therefore, there is a prerequisite for filling in the big drop or not filling in the big rise, that is, the historical increase cannot be too large.
Six is profit and loss: when the positive difference is correct, the contrast is not compensated. For the chips sold before, you must adhere to this principle when replenishing positions. When the chips sold fall and there is a positive difference in returns. On the contrary, when the sold chips rise and there is no positive difference to take back the opportunity, it is not advisable to replenish the position. If you really want to replenish your position, you must wait patiently for a while and then "positive difference" will be replenished after the stock price falls.
7 is the rhythm: when the callback is made up, if the pullback is not made up. On the basis of complying with the above-mentioned principle of replenishment, in actual replenishment operations, you must also pay attention to the in and out rhythm of replenishment operations. In particular, we must do: buy at low prices while waiting to buy stocks and fall, and do not grab stocks in rebounds or rises.
8 is position: it can be supplemented when it is light, but it cannot be supplemented when it is heavy. When replenishing positions, you should also pay attention to the proportion of a single variety to the entire account market value and replenish positions in accordance with the general requirements of "control positions and make good coordination". When the position of a single product does not reach the upper limit, the position can be replenished, otherwise it is not suitable to replenish the position. Even if you have a special liking for a certain variety, you must adhere to this principle.
When applying the specific skills to replenish positions, you should pay attention to the following points:
1. You cannot replenish positions in the early stage of a bear market
. People who trade stocks understand this principle, but some investors cannot distinguish between bull and bear turning points? There is a very simple method: if the stock price falls deeply, you will never replenish positions. If the current price of the stock is 5% lower than the buying price, you don’t need to replenish your position, because any intraday fluctuation may be untied. If the current price is more than 20% to 30% lower than the buying price, and some stock prices are even cut short, you can consider replenishing positions. The room for further decline in the future is relatively limited.
2. If the market has not stabilized, it will not replenish its positions.
The market is in a downward channel or relays the position, because the stock index will drag down the stock market and will only drag down the market downwards. Only a very small number of stocks that strengthen against the market can be exceptional. The best time to restock is when the index is at a relatively low level or just reverses upward. At this time, the potential for rise is huge, the possibility of falling is minimal, and it is safer to replenish positions.
3. Weak stocks do not supplement
, especially those stocks that do not rise when the market rises, but the market falls and the market falls. Because the purpose of replenishing positions is to use the profits of the stocks that were later replenished to make up for the losses of the stocks that were trapped in the previous stocks. Since this is the case, there is no need to restrict yourself from having to make up for the original type of stocks that were trapped.What kind of product to replenish is not the key to replenishing positions. The key is that the varieties that replenish positions must achieve the greatest profit, which is what we must consider. Therefore, if you want to replenish your positions, you need to replenish your strong stocks, and you cannot replenish your weak stocks.
4. The super dark horse that soared in the early stage did not replenish
There were many leading leaders in history. After emitting a brief dazzling light, they entered the darkness of the long night. For example: Sichuan Changhong , Shenzhen Development, China Jialing , Qingdao Haier , Jinan Light Cavalry, etc., their decline period is long, and they often fall deeply after a deep drop, and there is a deeper bottom after the bottom. Investors spreading this type of stock will only make up for it and become more trapped, and the more they are trapped, and they will eventually be trapped in the quagmire.
5. Seize the opportunity to replenish positions and strive to succeed in one go
Never replenish positions in segments or step by step. First of all, ordinary investors have limited funds and cannot withstand multiple flattening operations. Secondly, replenishing positions is a compensation for the previous wrong buying behavior, and it should not be the second wrong trading itself. The so-called step-by-step replenishment is to defend the uncautious buying behavior. If you replenish your positions many times, the more you buy, the more you become trapped, you will inevitably fall into a state of inextricableness.
Seven sentences for making money:
The first sentence: Do you want to be a sheep or a wolf?
is always 10% of the money making, and 90% of people lose money. This is the iron rule of the market, whether it is the stock market, whether it is the company or the company, it will not change. People in the world cannot be rich, nor can they be poor, but the rich are always the minority, and the poor are always the majority. This is God's decision, no one can do it, but there is always a way to make money. That is, you should be 10% of people, not most people and a few rich people. You need to change your mind and change your ideas and have the thinking of the rich. You have to study the thoughts and behaviors of the rich.
Second sentence: Have a strong interest in money!
Ask who is the vast earth, who is the wealth. Why can he make money? You can't make money. If you want to make money, you must first be interested in money and have a correct understanding of money, otherwise money will not come to you. Money is not a sin, it is the embodiment of value, the embodiment of performance, and the return of wisdom. Birds of a feather flock together, and money is divided by people. You must have a strong interest in money. It feels very interesting to make money. Only when you like money can you like you. This is definitely not materialism but the internal law of money operation. If you don’t believe it, you can see that those rich people like money and can play money very well.
The third sentence: The simplest method is the most profitable
The world is making money, but the simplest method is the most profitable Although all roads lead to Rome, all methods are unified. The simplest is the best complex method. Only a small amount of money can only be made, and the simplest method can make big money, and the simpler method is the more profitable it is. For example, Bill Gates became the richest man in the world by only making software, and Warren Buffett specializing in stocks quickly became a billionaire. Specifically speaking, every industry has methods to make big money. Their methods are very simple. You need to study making money and summarize your own simple methods to make money and then insist on it. Don’t easily change the simple methods to make big money. Making big money with complex methods is the third law of making money.
The fourth sentence: Make big money, you must have a goal
0 The flowers are similar every year, and the methods of making money are different, but one thing is the same, that is, you must have a goal to make money. The road to success is paved by goals. People without goals achieve goals for those with goals, people with big goals make big money, people with small goals make small money, and people without goals will always worry about food and clothing. To make money, you must have goals and ambitions. This is the fourth law of making money.
The fifth sentence: You must use your brain to make money
The world is bustling with fame, and the world is bustling with fame for profit. In the age of wealth, you must make money with your brain. Have you seen who makes a lot of money with your limbs? Some athletes make a lot of money, but Michael Jordan said: I don’t play ball with my limbs, but with my brain. You can only make small money with your limbs, and you can only make big money with your brain. Making money starts with the idea that the rich man’s money is all come up with. All the rich man in the world are the best at making money with his brain. You turn him into a pauper and he will soon become a rich man again because he can use his brain.
The sixth sentence: To make big money, you must dare to act
There is no free lunch in the world, nor does it fall from the sky. If you don’t act, you can’t make money. If you don’t dare to act, you can’t make big money, you dare to do it. Now people are talking about wealth more and more, but many people say more and do less, you must know: say it is a servant, be a master of being a person! Many of us economists are very good at talking about wealth, but who is rich? German activist philosopher Fichte said: Action, action, this is our ultimate goal. If you want to take a lot of money and act quickly, don’t be afraid to take a small step first and then take a big step. Remember that profits and risks are proportional.
Seventh sentence: If you want to make a lot of money, you must learn to make money
There are many smart people in the world, but why are the vast majority of people not rich? In the era of wealth and intelligence, you must learn to make money! Have you ever learned to make money? We have never learned to make money in elementary school, but we have never learned to make money in middle school, or we have never learned to make money in college. Financial qualities are different from IQ. IQ has a natural component, and financial qualities require 100% learning to improve. All the moguls such as Son Masayoshi Li Ka-shing Shi Yuzhu don’t make money at birth, but they all have two common characteristics: one is that they have a strong desire to make money, and the other is that they have strong learning ability. It is precisely because they are good at learning how to make money that they surpass ordinary people and reach the peak of wealth. Learn from successful people, increase your wisdom and improve your financial literacy like successful people, summarize the secrets of making money. You will soon become rich!
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Statement: This content is provided by Yuesheng Guide, which does not mean that the investment news recognizes its investment views.
