ATFXAnalysis: What is the stop loss position of stocks and how to prevent investment from being deceived

Stop loss refers to the timely elimination of a certain investment when the loss reaches the predetermined amount, in order to avoid the formation of larger losses. The purpose is to limit losses to a small extent when making investment mistakes. So, what does a stock stop loss position mean?Let's learn more together.

What is the meaning of stock stop loss position?

The stop loss position, also known as the stop loss point or stop loss line, refers to the maximum loss that an investment principal can accept in a transaction. Once the expected loss is exceeded, the position will be closed or reduced to avoid further losses. The purpose is to limit the losses during the investment process to the extent that investors can bear them. We call this position for closing or reducing positions a stop loss position or stop loss point.

How much is more suitable to set?

It is understood that the stop loss position of stocks is not fixed, and the stop loss position in everyone's heart is different. Some people set a stop loss level when trading stocks, where the loss reaches the principal amount10%When selling with determination, some people set their stop loss position to the point where the loss reaches the principal amount5%Just sell it;Some people end up losing at the support line and sell below it. The setting of stop loss positions is mainly based on the investors' own risk tolerance, and the range of the maximum acceptable loss level is the stop loss positions that investors can set.

The above is an introduction to the relevant content of stock stop loss positions, hoping to be helpful.