1. When the market is rising steadily, keep 70% of the position and wait until all the stocks in hand are profitable. Increase the position and hold the full position. If the stocks you bought later are trapped, you can sell some of the stocks that have been profitable to free up funds to cover the position and reduce the cost of the trapped stocks so that they can be unwound as soon as possible.
2. The market is in a box-body oscillation or in the early stage of adjustment, maintain 40% to 60% of the position. When the stocks in your hand are rising, reduce the weight in a timely manner. When the stock falls sharply, buy decisively and see profits.
3. When the market is in a downturn, don’t take chances and be patient and wait for the opportunity.
Nanjing Cultural Exchange reminds investors that it is not recommended to operate with a full position at any time.
The core of investment management is to recognize the unpredictable future and adopt appropriate methods to deal with it. On the other hand, investors must strengthen their selection of individual stocks and not put their eggs in one basket, otherwise they may be hit hard if their judgment is inaccurate.
In addition, adjusting the structure of positions is also a way to control positions. Investors can sell some stocks that are inactive, have large stocks, lack themes and imagination space, and choose some stocks that have Xinzhuang positions and are likely to evolve in the future. Stocks that have become mainstream sectors and leading stocks have been scooped up on dips.
The investor's own operating philosophy and risk tolerance are also one of the references for controlling positions. For example, if an investor has a strong short-term tolerance, the position can be higher. And if you plan to be long-term, then hold on to certain value investment stocks, add a small amount of positions when the stock price drops sharply, and reduce the position when the stock price rises sharply. This is a typical "looking at the long term and short term" is also a wise way to control positions.
The market is currently in the late stage of adjustment. If investors are optimistic about the market outlook, it is feasible to choose two stocks for the long term. The combined positions of the two stocks are suitable for half positions. The remaining 50% of the funds can be used for 10 to 20%. Come chase the short term. However, the reserve capital cannot be less than 20%, even in a bull market. In a weak market, the reserve capital must be more than 20%.
No matter what position control method is adopted, the key is that investors cannot break through their own position control standards on impulse.
Nanjing Cultural Exchange: How investors should control their positions