There is no best way in the stock market, only the most appropriate way. As long as it is used properly, it will be a sharp weapon to turn defeat into victory; If it is not used properly, it will also become a hotbed of self-restraint. It is not a good way to solve the problem, but it is the most appropriate way in some specific circumstances. Now let’s take a look at the five tips for trading experts to cover their positions.
- At the beginning of a bear market, we can’t cover our positions.
People who speculate in stocks all understand this, but some small businesses can’t distinguish between bull and bear. What should we do at the turning point?
There is a very simple way: stock prices do not fall deep, determined not to cover positions. If the current price of the stock is 5% lower than the buying price, there is no need to cover the position, because any intraday shock may be relieved. If the current price is 20% ~ 30% lower than the purchase price, and even some stock prices are cut off, we can consider covering the position, and the space for further decline in the future market is relatively limited. - Market did not stabilize, do not cover.
When the market is in the channel of decline or rebounding, we can’t make up the position, because when the stock index falls further, it will drag most stocks down the slope together, with the exception of a few stocks that are strong against the market.
The best time for trading experts to cover their positions is when the index is at a relatively low position or has just reversed upward. At this time, the potential of rising is huge, the possibility of falling is the smallest, and it is safer to cover the position. - Weak shares are not supplemented.
In particular, the market up it does not rise, the market down it fell with no Zhuangzi.
The purpose of position covering is to make up for the losses of the previous covered stocks with the profits of the later covered stocks. In this case, there is no need to restrict ourselves to make up for the original covered stocks.
It’s not the key to what kind of products to replenish. The key is that the products to replenish should make the most profit, which is the key consideration. Therefore, to make up for positions, we should make up for strong stocks, not weak stocks.
4、 The super black horse that has risen sharply in the early stage will not be compensated.
There used to be many leading leaders in history. After a brief and dazzling light, they stepped into the darkness of a long night.
This kind of stock will only make up more and more sets, and the more sets, the deeper, and eventually will be mired.
5、 Grasp the opportunity of replenishment and strive for a success.
We must not replenish positions by stages or by levels.
First of all, ordinary investors have limited funds and can’t afford to be leveled many times.
Secondly, position covering is to make up for the previous wrong buying behavior, which should not be the second wrong trading. The so-called step-by-step replenishment is a defense for careless buying behavior,
Many times to fill positions, the more you buy, the more you set up, the result will make you unable to extricate yourself from the situation.