Capital Fengshi: How to Replenish Positions After Being Trapped

Trapping and cutting flesh is a topic that all investors are unwilling to face, because it represents losses, and their efforts are in vain. This is like breaking up in a relationship, where a lover breaks up and a girl cries to the death. In fact, it's hard to say where a man is good. She just feels like she's going to collapse like heaven and earth from now on, feeling like she'll never meet someone like that again. More often than not, I think girls don't care about how good that man is, but about how much time and effort they put into him, just like a city they have worked hard on collapsing, feeling heartbroken and helpless.

In the stock market index and the repeated downward adjustment of most individual stocks, it is inevitable for investors to deeply trap themselves. There are two countermeasures adopted by most stock speculators: one is to bear the pain of stopping losses and cutting meat to leave the market, and the downside is that it is possible to sell stocks at floor prices; The second is to firmly hold onto and wait for a long period of unraveling, but the downside is not knowing when and when to unravel. From an operational perspective, both of these trading operations belong to passive strategies, where speculators do not take the initiative and wait for market price fluctuations to determine their profit and loss fate.

Deconstructing is a passive remedial measure in situations where investment has already suffered losses, and there is a risk of continued losses. Therefore, when using these methods, it should be determined based on one's own situation and not blindly used. Otherwise, it may lead to a "killing one hundred enemies and losing three thousand oneself" outcome.

  

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Secret Method Point One:Underlying Replenishment

This is the most widely used and also the simplest way to solve the problem. When investors are trapped at a high level, they choose to hold their positions and then replenish their positions at a low level, which means buying the currency again at a lower price in order to unwind through a rebound or reversal in the market. When the market rebounds, the losses of buying multiple orders at a high level gradually decrease, while the profits of buying multiple orders at a low level gradually increase. This way, even if the market does not return to its original high level, investors are more likely to unwind. If the market develops well, there will still be opportunities for profitability.

Risk:

Low position replenishment relies on the judgment of the market situation. If the trend has already reversed or if you enter the market early to replenish before rebounding, you will face the risk of greater losses as you replenish the position. This method is extremely risky for margin trading.

Secret Method Point 2:Inverse price difference[High throw and low suction

]

The reverse spread, commonly known as "selling high and buying low", is also a very easy way to unwind. When the market is in a range of oscillation, the trapped position is mostly closed at a relatively high level, and when the market drops to a relatively low level, it is bought again, waiting for the high level to sell again, in order to earn the middle price difference and achieve the goal of cost sharing.

[/table] Risk:

The risk of reverse price spread is relatively small, as long as it relies on the upper and lower tracks of the oscillation range, operations can be carried out smoothly. However, if the oscillation range turns to the bottom, there is a risk of falling short when selling on the upper track. If the oscillation range turns into a downward relay, there is a risk of being trapped again when buying on the lower track.

Secret Method Point 3: Reduce Positions During High Times

Reducing positions at high points, as the name suggests, is to advise investors who have been trapped to cut positions early, but the prerequisite is that investors have confirmed that the market judgment is incorrect, and the way is to decisively close positions at high points of the rebound market, or to close a portion of positions. This is the last resort in the strategy of resolving the situation, which is a "escape" tactic adopted when there is no hope of resolving the situation.

Cutting down warehouses is not without strategy. Reducing positions at high points can be basically implemented in two stages. The first stage is "high points", which means that even if the main trend has contradicted one's original judgment, one must wait for a rebound market that is in line with one's own interests before starting to cut positions;The second stage is "reducing positions", and the reason why it is referred to as "reducing positions" instead of "cutting positions" is because reducing positions cannot be "cut off" in one fell swoop. All positions that have been shorted should be sold out in a single short, and should be gradually reduced in a step-by-step and planned manner. Firstly, investors should analyze the stage in which they are trapped in a short position, that is, confirm that they are trapped**The development trend of.

[table=100%,#ffffff]Risk:

The difficulty of reducing positions at high prices lies in how to confirm the market judgment is incorrect and the timing of making decisions. If the main trend of the market is consistent with one's original judgment, but the current trend is contrary to the original judgment, investors are likely to lose their profit opportunities for nothing. However, if investors discover that the market judgment is incorrect, they may wake up later and often have caused certain losses. The above content is for reference only.

Exclusive planning and release by senior analyst Leung Yiu ho,VX:JL88884With rich experience in real trading operations and a solid theoretical foundation and practical experience in this article, I pay attention to fund management and risk control, and have a stable and decisive operating style. Reading ten thousand books is better than traveling ten thousand miles