Capital Fengshi: Five Common Secrets for Retail Investors to Increase Positions

Firstly, it should be clarified that adding positions is an investment technique. It is a tool, not a purpose. The purpose of investment is to obtain the minimum risk return. Therefore, only when adding positions can help investors achieve the above goals, it is of practical value. Otherwise, it must be abandoned, as stated in the Diamond Sutra. All laws are metaphors, and laws should still be abandoned, let alone illegal.

1、 Applicable objects for warehouse expansion

  

In terms of analytical ability, investors who can make accurate judgments on the direction of the next week at least need to be able to use additional positions(This requires investors to not only look at charts, but also pay attention to fundamentals, weather, policies, etc)In terms of operational rhythm, adding positions is suitable for investors who combine short-term and medium-term investments. In terms of capital volume, adding positions is suitable for larger funds80%Don't consider adding positions if your position is good, or if the ratio of reserve funds to current funds reaches or exceeds1:1Suitable operational skills for adding positions.

2、 Why wasn't it a one-time opening of the position

  

There are usually several situations where additional warehouse operations need to be carried out:

1If the funds are too large, it is likely to be discovered in a single entry. Taking Qiangmai as an example, if a single entry is made150If this happens for several consecutive days, it is easy to be targeted and eaten by institutions. At this time, it is necessary to adopt the technique of adding positions by breaking them into smaller parts.

2When fundamental changes are discovered but technical aspects have not yet been reflected, it is well known that speculative markets are not always rational and often have an emotional side. For example, when the fundamentals are good, the graph often needs to shake again, possibly even fall, and vice versa. At this point, if you want to occupy a favorable position but are unwilling to take more risks of volatility, you need to adopt the technique of staged investment.

3、 The use of additional storage

  

Adding positions is usually done in a pyramid style, using long positions as an example, buying a portion at the bottom, such as80Hand, wait until the market reaches a certain level before buying60Hand, as it rises again, buy again40 Hands, and so on. Because there is always more buying at a low price than at a high price, one can always ensure that their holding cost is lower than the market average price. When thinking that the market is about to turn around, it is important to level out as quickly as possible when leveling out in one or two installments.

4、 Five tips for adding positions

  

1Before deciding to use this technique, one should be very familiar with the rules of the variety to be operated on, as well as their own psychological changes at various stages of the variety. To achieve this, one should know oneself and the other, and at least have a process of tracking the variety from rising to falling or from falling to rising.

2This method can only be used when the fundamentals support the variety to move out of a unilateral trend. If it is used in a fluctuating trend or in the process of reversal, the gains and losses often outweigh the losses.

3We must follow the principle of the pyramid to ensure that our costs are lower than the market.

4Adding positions is often combined with rolling leveling and active locking.

5Always recognize that adding positions is just a technique, and adding positions is for profit. Do not add positions for the sake of adding positions.

Follow the public "Zhong" number [Capital Posture] and more information will help you.

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