Issues that should be paid attention to when stopping losses in stock trading

First, stop loss should be combined with the trend. There are three types of trends: up, down and consolidation. During the consolidation stage, the probability of the price being stopped within a certain range will be wrong. Therefore, the execution of the stop loss must be combined with the trend. In practice, the author believes that consolidation can be regarded as an incomprehensible trend, and investors can rest and recuperate.

Second, "precaution will lead to success, failure to predict will lead to failure." All stop losses must be set before entering the market. When investing in stocks, you must develop a good habit, which is to set a stop loss when opening a position. When losses occur, it is often too late to consider what criteria to use.

Third, choose trading tools to grasp the stop loss point. This varies from person to person. It can be moving averages, trend lines, patterns and other tools, but they must be suitable for you. Don't blindly use them just because others use them well. The determination of trading tools is very important, and the ability to use trading tools will lead to completely different trading results.