12 Inappropriate Timings in Stop Loss Operations

1. In stock or ebc foreign exchange transactions, if investors are deeply trapped due to indecision and lose a lot, it is not advisable to stop losses. At this time, it is too late to stop losses, which will not only make it difficult to recover losses, but will seriously hit the investment mentality.

2. It is not advisable to stop losses in stocks where the main capital is washing up. Before the main force pulls up, in order to reduce the resistance in the future and raise the average cost of the market, it often adopts a washing strategy to try to clear out investors who lack confidence. At this time, confidence should be maintained and losses should not be stopped at will.

3. During the normal technical pullback in an upward trend, it is not advisable to stop losses. As long as the overall market trend does not weaken, midline holdings can be adhered to, supplemented by a short-term high-selling and low-buying operation strategy.

4. When approaching an important bottom area, it is not advisable to stop losses. When the stock index is in the bottom area, it usually has no downward momentum, but the broader market may still experience a final indefinite short fall. Investors need to strengthen their confidence in holding shares.

5. When the falling space of individual stock prices is limited, it is not advisable to stop losses. When the stock price has undergone a long-term adjustment and a deep decline, it is compressed to a very low position, and the downward space is limited again. At this time, not only should it not kill the decline, but it is necessary to consider how to actively absorb it.

6. When the index is seriously oversold, it is not advisable to stop losses. Indices are different from individual stocks, and their seriously oversold signals are usually more reliable than individual stocks. Ordinary indicators should not be used to observe the oversold of the broader market. We should focus on four special indicators: STIX, overbought and oversold OBOS, ADR, and ADL.

7. When the volume is reduced at the end of the bear market, it is not advisable to stop losses. The contraction of volume energy indicates that the downward momentum has dried up, and it is not wise to close the position and leave the market at this time.

8. When there is a panic trade, it is not advisable to stop losses. The emergence of panic selling is often an important feature of the stock price bottoming out in stages. Investors should not blindly join the ranks of panic selling.

9. When the stock price is close to an important long-term historical support level, it is not advisable to stop losses. At this time, it should be better to wait and see, but it is not urgent to rebound from the bottom fishing. You need to wait for the trend to be finally confirmed before taking action.

10. When the stock price is seriously deviating from the value, it is not advisable to stop losses. Irrational plunges often occur in bear markets, and some stocks with investment or speculative value will fall to prices that are usually difficult to reach. At this time, it is necessary to have the patience of long-term holding and avoid blind stop losses.

11. When a stock falls to a certain position and stabilizes, it attracts the attention of mainstream funds in the market, and there is continuous intervention of incremental funds, which can effectively amplify the volume. It is not advisable to stop losses.

12. According to the risk-return ratio, if you buy the stock at the current price without considering your own profit and loss, the future risk is much greater than the return, and you should resolutely stop the loss; conversely, if the future return is much greater than the risk, you should not stop the loss. In transactions such as ebc foreign exchange, similar judgments need to be made based on the return-risk ratio.