Why is position management important?

I believe that most investors have such a feeling: easy to buy, difficult to control positions. In a bull market, stocks catch up as much as they rise, and in a bear market, stocks cover their positions as soon as they lose money. Or either the whole position leads to no position to fill, or the position is too light to beat the breast in the face of soaring.

Position control is the premise of risk control, in the investment career, the position determines success or failure, there is no awareness of position management is the main reason for the loss of most investors.

Three easy-to-use position management methods for investors

There are three commonly used position management methods: funnel position management, rectangular position management and pyramid position management.

Let's first understand the basic usage and applicable environment of these three position management methods, as well as their advantages and disadvantages:

① funnel position management method

This kind of management lies in that the initial entry capital is relatively small, the position is relatively light, if the market is expected to rise and the market falls, then the position will be gradually increased in the future, and the proportion of the position will become larger and larger, thus diluting the cost. In this way, the position control is small at the bottom and large at the top, just like a funnel. The advantage is that the initial risk is relatively small, in the case of no explosion, the higher the funnel, the more substantial the profit.

However, it is worth noting that the funnel position management method emphasizes that the more falling, the more you buy, the greater the risk, and individual investors should be careful to use it. For example, the blue chip stock XXX, whose share price was as high as more than 40 yuan, was later found to have falsified profits and finally fell to only 2 yuan or even 3 yuan. This kind of example has often come across in the past. In fact, to use funnel position management, the most important point is that the investment object must have the possibility of bottoming out and rebounding or even reversing. If used in stocks, investors must have a good understanding of its fundamentals.

② rectangular position management method

The amount of money in the initial entry of the rectangular position management method will account for a fixed proportion of the total funds, such as 1prime 3.If the market is expected to rise, the market will fall, then gradually increase positions, reduce costs, later positions will follow this fixed ratio, the shape is like a rectangle.

Advantages: only a certain proportion of positions are increased each time, the cost of holding positions is gradually raised, and the risks are shared equally and managed averagely. In the case that the position can be controlled and the future direction is consistent with expectations, there will be huge profits.

Disadvantages: in the initial stage, the average cost rises quickly, and it is easy to fall into a passive or trapped situation.

③ pyramid position management method

The so-called "pyramid" is illustrated by a simple example, that is, the first time it invests 50,000 yuan to buy a certain variety, the second time it invests 40,000 yuan to buy the same variety, and the third time it invests 30,000 yuan to buy another variety, and the amount invested each time is less than that of the last time.

This method is mostly used in an one-sided rising market, so the price of each increase is higher than the previous one, and the number of purchases is less than that of the previous one, drawing it like a pyramid with a big, top and small bottom.

If an investor has 100000 yuan, buy 25000 yuan in the stock at 5 yuan, 6 yuan, 7 yuan and 8 yuan respectively, with an average cost of 6.50 yuan. Since then, the trend has proved that 8 yuan is the top, and the stock price has returned to 7 yuan again. The income is 7.7%. However, if the pyramid injection method is used to pursue the rise, buying 40,000 yuan, 30,000 yuan, 20,000 yuan and 10,000 yuan respectively at 5 yuan, 6 yuan, 7 yuan and 8 yuan respectively, then the average cost is 6 yuan, and the rate of return can be raised to 16.7%.

Advantages: according to the rate of return for position control, the higher the winning rate, the higher the position used. Take advantage of the persistence of trends to increase positions. In the upward trend, there will be high returns and low risk rates.

Disadvantages: in a volatile city, it is more difficult to get a return. The initial position is heavy, and the requirement for the first entry is relatively high.

The three methods of adding positions have their own advantages, but in practical application, we must pay attention to the investment object and investment stage. Pay attention to different strategies in different stages! To put it simply: the rectangle is suitable for concussion, the funnel shape is suitable for bottom copying, and the left side is suitable for trading. The pyramid is suitable for the early days of the bull market, trading on the right. The correct method of position management can help us to allocate the proportion of funds reasonably and maximize profits while controlling risks.

What should I do if the position management is too troublesome?

After learning so many kinds of position management methods, some students still find it too troublesome to operate, usually have no time to mark the market, miss the best time to increase positions, and are not very good at allocating funds to enter the market. At this time, the fund just provides a good choice for investors. Fund managers will do a good job of position management, what we need to do is to use some of the funds to allocate funds and let fund managers take care of them for us.

They will deeply track and investigate hundreds of large asset management agencies at home and abroad, scan information during the day, study macro-economy deeply at night, and come to live broadcast from time to time to interpret the investment direction of popular tracks, bearing the mental pressure of product withdrawal under the turmoil of the big market. You give them tens of thousands of yuan to help you invest, you enjoy saving on demand, 0 commission trading, they only charge you less than 2% of the management fee a year, and they have to help you manage your finances to avoid black swans and help you seize opportunities in the global market. buying the funds they manage is indirectly equivalent to holding multiple high-priced industry stocks, isn't it fragrant?

Only the combination of excellent fund managers and excellent fund management platforms will have a better chance to create good products recognized by the market. With the recent market turmoil, the trump card fund under Fortune Elephant Wealth has not only stabilized the pullback, but also captured good returns!

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Generally speaking, in the changing and unpredictable investment environment, the road of financial management is not smooth. We should not only study individual stocks and pay attention to the control of positions, but also control our own risks, avoid putting all funds into one basket, and try our best to diversify investments. diversify risks and maximize our probability of making money is the essence of investment. On the road of investment, Fortune Elephant Wealth grows with everyone!