Setting standards for stock dynamic take-profit levels

1) The extent of the price drop.

Take profit and sell when the stock price decreases by 5%-10% compared with the highest price. This is just a reference data. If investors find that the stock price has indeed peaked, they must sell decisively even if it does not fall to the 5% standard.

2) Take profit when the moving average breaks.

In a rising market, the moving average follows the rise of the stock price. Once the stock price turns around and breaks through the moving average, it will mean that the trend is weakening, and investors must stop profits immediately to preserve the fruits of victory.

3) Take profit in technical form.

When the stock price rises to a certain stage, stagflation occurs, and various head patterns are constructed, profits must be taken resolutely.
The function of dynamic stop profit is that when the invested stock has already made a profit, due to reasons such as the stock price rising pattern is intact or the theme has not been exhausted, investors believe that the stock still has the power to continue to rise, so they continue to hold shares until the stock price falls. When a certain standard is reached, investors take profit-making selling operations.
Taking profit requires a strong psychological support: the most important psychological requirement in taking profit is the determination to sell. When the stock price stagnates or falls, investors in the profit stage cannot be indifferent or understand. The importance of taking profit is what is missing is the determination to take profit. Therefore, investors cannot hesitate and waste the opportunity when taking profits, and must implement the operation of stopping and continuing to make profits. If taking profit is the basis for ensuring the stable growth of capital market value, then determination is the basis for effective implementation.