cut the position
out of the game, in order to avoid the formation of
larger losses. The purpose of this is to limit the loss to a smaller range when the investment fails. An important difference between stock investment and gambling is that the former can limit losses to a certain extent through stop-loss, while maximizing the success of the payoff, in other words, the stop-loss makes it possible to obtain a greater benefit at a smaller cost. Countless blood facts in the stock market show that an accidental investment error can be fatal, but stop-loss can help the investor
They can make the difference.
The stop-loss is both an idea, a plan, and an operation. The concept of stop-loss is that investors must recognize the importance of stop-loss in the stock market investment from a strategic height, because in the high-risk stock market, the first thing is to survive before talking about further development, the key role of stop-loss lies in the ability to allow investors to better survive. It can be said that stop loss is one of the most crucial concepts in stock market investing. Stop-loss program refers to an important investment decision before the implementation of the plan must be developed accordingly how to stop loss, stop-loss program in the most important step is based on a variety of factors (such as important technical level, or capital status, etc.) to determine the specific stop-loss level. Stop-loss operation is the implementation of the stop-loss plan, is a stock market investment is of great significance to a step, if the stop-loss plan can not be transformed
for the actual stop-loss operation, stop-loss is still only on paper.