Shares are certificates of ownership issued by a joint stock company. It is a marketable security issued by a joint-stock company to each shareholder as a certificate of ownership in order to raise capital and to obtain dividends and bonuses. Shares are the main long-term credit instrument of the capital market, can be transferred, trading, shareholders can share the company's profits by virtue of it, but also have to bear the risk of the company's operation errors. It is a joint-stock company in the raising of capital issued to the contributors of the share certificates, on behalf of its holders (i.e., shareholders) of the joint-stock company's ownership, the purchase of shares is to buy a part of the enterprise business, that is, the growth and development of the enterprise * * * with the growth and development. This ownership is a comprehensive right, such as attending shareholders' meetings, voting, participating in the company's major decisions, receiving dividends or sharing the difference in dividend prices, etc., but also *** with the company to bear the risks arising from operational errors. Obtaining recurring income is one of the most important reasons for investors to buy stocks, and dividend payout is the main source of recurring income for stock investors.
After buying a stock, the price of the stock falls, i.e., the current price of the stock is lower than the cost price, so the investor's account is in the red. Stop loss is to prevent the stock from continuing to fall to bring about greater losses, so the stock is sold in a timely manner. This is what it means to stop loss in time. The main purpose of investing is to make a profit, but any investment has risks and there is no such thing as a one-book product. Therefore, investors need to remain rational, not overly greedy high expected returns, see the form is not right on the decisive stop loss.
The stop-loss point can be used to support or pressure level as a reference, that is, in the support position to build a position, fell below the support level that is the stop-loss. Common support levels are:
One, the previous historical lows, gaps, important averages. For example: the stock price fell below the 60-day average or half-year line, etc., there may be an accelerated downward trend, so it reflects the selling.
Two, the previous high of the stock. For example: M head pattern, if investors happen to buy in the first high, the stock price fell after a small reversal of the pattern, reversal even if not yet back to the capital should be stopped in time, because the M head to foreshadow the decline in the market, and the signal is very strong.