The truth is that no one in the world can really know if a stock has reached the bottom of its phase. Judging the bottom of the stage is really a probability calculation. You can use words like "probably has reached the bottom of the Severance Payment（遣散費） stage" or "suspected to have fallen to the bottom of the stage" or "likely to have fallen to the bottom area" to make a vague judgment. That's all.

These people who swear that the sales market or stocks have fallen to the bottom of the stage are irresponsible people. The world's leading investment banks Goldman Sachs, Citibank, etc. publicly published a certain so-and-so positioning point is the bottom of this kind of, seemingly well-spoken, in fact, the final face by the sales market slapped. There are also some financial headlines red several times predicting the bottom end of the analysis, often wrong, while also despised by everyone.

Many people in the speculation of stocks will a deep-rooted awareness - no accurate predictive analysis will be difficult to speculate on stocks.

In fact, this is a very wrong perception. Accurate projection of the bottom and top is something that only an immortal can achieve.

The most important thing in trading is risk aversion, which is really the more reliable thing. For example, for us 2600 points may be the bottom, then we know that this is just a very likely, not equal to our own judgment must be accurate. We must be well prepared, that is Top 10 Rising Stocks（十大升幅股票）, once the change in stock prices or the development of enterprises to verify our own judgment is incorrect, we must dare to correct the error, that is, stop loss sold.

How to judge the bottom?

The bottom of the market is only a probabilistic interpretation and judgment of both technical or fundamental aspects of the stock. First of all, it is important to know that the forecast conclusion is only a probability, not the actual future certainty.

So we will use sufficient preparation for the prediction analysis conclusion that can be advanced or retreated. In terms of capital allocation, there is a need to allow for leeway in the stock portfolio. Adequate prior preparation for the possibility of incorrect conclusions in order to try to ensure that the damage is relatively small.

For example, if we use technical indicator analysis to determine that a stock or stock market has perhaps fallen to a stage bottom, then we should open positions in tranches. Once we find that the market trend confirms that our own judgment is the problem, we should gradually reduce the position in the part set beforehand.

If we use fundamental judgment to buy a stock, but in fact the individual stock behind its listed company lost its competitive advantage, then you only have to stop loss to be eliminated.

Keep in mind that buying and selling at the bottom is possible in and out. Everyone bottom just heart bottom, does not mean the future bottom.

Some people will say, if we stop loss after the stock price and return to soar how to do? In fact, it is the wrong stop-loss how to do?

My answer is: not right is wrong! Which a physician under the knife there are not a few ghosts in vain?

Selling the wrong stock would have been one of the costs of stock trading. There is nothing to be surprised or remorseful about. It is simply not possible to trade without making mistakes all the time.