Joke Collection Website - News headlines - What does it mean that cash is king, trend is king, position is phase and stop loss is sacred?
What does it mean that cash is king, trend is king, position is phase and stop loss is sacred?
This should be a stock proverb, which talks about some classic stock market operation methods and concepts. Cash is king: in other words, we should hold stocks as little as possible and hold money as long as possible. We speculate in the stock market in order to earn cash. Frequent operations will only make your cash less and less, especially in a bear market. Try to hold funds, don't buy them easily, and don't operate markets that we don't understand. Don't think that speculation means buying today and selling tomorrow. There is a saying in the casino that "watch the gambling clearly", and so is the stock market. It's not too late to enter the market after understanding. Stock trading is mainly about holding money. If you operate correctly several times a year, you can double your capital. It is king to follow the trend: it is said that stocks must see the general trend clearly, and it is not wrong to follow the trend. The stock index holds stocks in an upward trend and funds in a downward trend. The way to judge the trend is: look at the moving average at the beginning of the market, usually starting from the 30-day moving average. As long as the 30-day moving average looks upward, we can think that the short-term trend is upward. At the end of the trend, it depends on the trend line. As long as it falls below the uptrend line, the market will basically come to an end. Even if it rises later, it can still hit a new high. This is also a well-known time. This is a fishtail market. Let's leave this high-risk market to others. We have settled down and can have a rest. The reverse operation is the same. Peer-to-peer: Many investors will be confused about the actual price of the stock. When they saw that the price of a stock was below 5 yuan, while other stocks were above ten or twenty yuan, they thought that the stock was cheap and bought in large quantities, but the result was still trapped. Why is this? In fact, this is the concept of the division of stock prices. What are high and low? High corresponds to low. There is no high without low, and there is no low without high. The example just cited, 5 yuan's stock, seems to be very low, but you know, 4 yuan is even lower than 5 yuan. Similarly, where's 3 yuan's money? 2 yuan, where's the money? There is 1 yuan, isn't it lower? Therefore, high and low are relative concepts. 20 yuan's stock may be undervalued, while this 5 yuan stock is highly valued. Therefore, we should not be confused by the stock price. The "phase" here has the meaning of assistance and reference, and is not the absolute standard of our business. Stop loss is the most sacred thing: quite a few investors bought the stock at a very low price, but they still think that your share price may fall further. I didn't expect the stock to go down all the way, and more than 50% of the funds were wiped out in this operation, resulting in losses. Then why did they lose money? The main reason is that there is no stop loss in time, which leads to painful results. The person who will stop the loss will determine the position of the stop loss when buying the stock. Once the stock price falls to the stop loss position, he will immediately stop the loss and save the principal for the next operation. Only those who can stop losses can make money in the stock market, because they lose small money and make big money. In exchange for big gains at a small price. So stop loss is the most sacred.
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