For example, you have 6,543,800 yuan for investment funds, and now you spend 40,000 yuan to buy funds or stocks. Your position is 40%. If you buy all the funds or stocks, you will be in Man Cang.
If you redeem the fund in full and sell the share, you will be short.
If the current market is very dangerous and may fall at any time, then you should not go to Man Cang, because if the market falls, you may lose money selling futures, but you have no money to buy futures, so you are very passive. Usually when the market is dangerous, you should have half or less positions. In this way, in case the market plummets and you find that the futures you hold have fallen to a very low price, you can buy them, and when they go up, you can sell your original ones and earn the difference.
Generally speaking, the position should be kept in a semi-warehouse state at ordinary times, that is to say, reserve forces should be left in case of accidents. Only when the market is very good can you visit Man Cang for a short time.
How to judge the position:
Being able to control your position according to market changes is a very important ability in stock trading. If you don't control your position, you will be very passive, just like fighting without a reserve team.
How to control positions:
Scientific actions of opening positions and going out can avoid risks to a great extent and minimize the risk coefficient of capital investment. Although in theory, its negative factors may also bring about a moderate reduction in profits, the stock market is a high-risk investment market. It is decided that the safety of capital investment must be considered, and ensuring the safety of original investment is the basis of investment. It is a scientific and steady investment strategy to obtain the inevitable investment income under the condition that the original funds are safe.