I found that when many students invest, they just rushed and ignored one very important thing: take profit and stop loss.
Take profit is to sell after making a profit, so that the profit is in the pocket; Stop-loss is to sell in time after a loss to stop and let the loss expand.
Some of the students I have contacted in the past few years have asked me that it is a happy thing to make a profit, why should I "stop" it, because this profit may not be sustainable, and we must put the income in our pockets to prevent the risk of subsequent development. Someone else asked me, if there is a floating loss, I sell in order to stop the loss, isn't it just to "pocket the loss"? Should wait for the price to come back.
It may not be able to rise back, if you continue to hold, the loss may be more serious, investment is risky, if you can't bear the slightest risk, you should deposit bank fixed deposits; Even if it rises back, if you have to wait 10 years, but your money will be used for other purposes after five years of investment, that is, the term is not allocated, and you should also stop loss.
Next, let's talk about the most commonly used take-profit and stop-loss methods--- simple proportional method: set a ** percentage, such as 10% as the take-profit ratio, and then set a ** percentage, such as 5% as the stop-loss ratio.
It should be noted that the take-profit ratio is higher than the stop-loss ratio, because the secret of most investment masters is not a high win rate, but a large profit and loss ratio. That is to say, it is not the accumulation of many small earnings, but the relatively small number of large earnings.
If you invest 10,000 yuan to buy **, the take-profit ratio is 10%, the stop-loss is 5%, and the winning rate is 50%, that is to say, 5 times**, 5 times**. As shown in the figure below:
Although the win rate is only 50%, the total profit and loss is nearly 25% due to the difference in the take-profit and stop-loss ratios. Due to the different settings of the take-profit and stop-loss ratio, if you want to keep the principal without loss, in fact, you don't need to have a probability of 50%.
But this method is suitable for more stable **, if it is a large increase in the future**, then we will sell off, in order to solve this problem, you can use the moving proportional method instead.
For example, the stop-loss ratio is 8%, and the take-profit ratio is 25%. When the stock price rises to 125% of the cost price, continue to hold more than profit. After that, 125% of the cost price is used as a new benchmark to calculate the next take-profit and stop-loss. On the basis of the new baseline, continue to rise 25% to take profit, continue to fall 8% stop loss.
As a result, the stock price rose to 1 percent of the initial cost price25*1.25=156% may take profit and fall to 1 of the initial cost price25*0.Stop loss at 92=115%. This is the two-stage moving proportional method, which is actually the simple proportional method used twice. The three-stage, four-stage take-profit method and so on. The moving proportional method may make more money. The specific decision is made in several paragraphs, which can be combined with the fundamentals of the first class, the news side and other comprehensive decisions.
It must be noted that there is no one way to guarantee selling at the highest point; No one can ** the future, only reasonable speculation about the future ups and downs. In addition to the method of taking profit and stopping loss, if you want to make money in investment, you also need to look at the ability to choose stocks and the ability to choose the right time, as well as practical experience.