What are the several modes of position management_Tips for fund position control

Position management does not involve stock selection and timing techniques. Some position management experts have even tried it and decided by tossing a coin. Whether to go long or short, under such random decisions, you can still make money by relying on good position management techniques. Below are the several modes of position management compiled by the editor. I hope it can help everyone.

What are the several modes of position management?

Funnel type position management method

The initial entry amount of funds is relatively small and the position is relatively light. If the market trend is opposite, The direction is running, and the market outlook will gradually add positions, thereby diluting costs, and the proportion of adding positions will become larger and larger. In this method, the position control is small at the bottom and large at the top, much like a funnel, so it can be called a funnel-shaped position management method.

1. Advantages: The initial risk is relatively small. Without liquidating the position, the higher the funnel, the more substantial the profit.

2. Disadvantages: This method is based on the premise that the market outlook and judgment are consistent. If the direction judgment is wrong, or the direction trend cannot exceed the total cost level, you will be trapped in a situation where you cannot make a profit. Under normal circumstances, at this time, the position will be relatively heavy, the available funds will be relatively small, and there will be difficulties in capital turnover. In this position management method, the more the reverse fluctuation occurs, the larger the position will be and the higher the risk will be. When the amplitude of the reverse fluctuation reaches a certain level, it will inevitably lead to full position holding. At this time, as long as the direction A small fluctuation in the opposite direction will lead to liquidation.

Rectangular position management method

The initial amount of funds entering the market accounts for a fixed proportion of the total funds. If the market develops in the opposite direction, the position will be gradually increased in the future to reduce costs and increase the position. They all follow this fixed ratio and are shaped like a rectangle, which can be called a rectangular position management method.

1. Advantages: Only a certain proportion of positions are added each time, the cost of holding positions is gradually increased, and risks are evenly shared and managed on an average basis. When positions can be controlled and the direction of the market outlook is consistent with judgment, huge profits will be obtained.

2. Disadvantages: In the initial stage, the average cost rises quickly, and it is easy to fall into a passive situation quickly. The price cannot cross the break-even point and is trapped. Just like the funnel-shaped method, the more the price changes in the opposite direction, the larger the position will be. When it reaches a certain level, the entire position will be held. However, as long as the price changes a little in the opposite direction, it will lead to liquidation.

Pyramid position management method

The initial amount of funds entering the market is relatively large. If the market moves in the opposite direction in the future market, no more positions will be added. If the direction is consistent, the position will be added gradually. The proportion of added positions is getting smaller and smaller. The position control is in the shape of a large one at the bottom and a small one at the top, like a pyramid, so it is called the pyramid-shaped position management method.

1. Advantages: Position control is carried out according to the rate of return. The higher the winning rate, the higher the position used. Take advantage of the continuation of the trend to increase your position. In a trend, high returns will be obtained with a low risk rate.

2. Disadvantages: In a volatile market, it is difficult to obtain profits. The initial position is heavier and the requirements for first entry are relatively high.

The funnel-shaped position management method and the rectangular position management method are that after the first entry, the market will run in the opposite direction, but you are still convinced that the later trend will run according to your own judgment and carry out position management. The pyramid position management method is that after entering the market, if the market moves in the opposite direction, the position will not be added. If the stop loss is reached, the stop loss will be carried out. The first two methods are against the market, while the latter is with the trend.

The correct premise of the funnel-shaped position management method and the rectangular position management method is that the market outlook will proceed according to the predicted trend, and the positions will become heavier and heavier, and profits can be obtained without liquidation. , for investors, the risk is greater. The pyramid position management method is to lose at most a certain proportion of the first entry capital, rather than the risk of all funds. Therefore, the pyramid position management method bears less risk.

Tips for controlling fund positions

1. One-time purchase

Buy timing: a volatile market, a bear market bottoming out or a bull market in the main rising stage;< /p>

Disadvantages: Errors in trend judgment lead to a continued decline in the bear market, or the bull market enters the stage of retracement, adjustment, or range oscillation, and the cost of correction is high;

The largest short-term floating loss ratio: 20% or Larger;

Advantages: The trend judgment is correct, and the cost is much smaller than buying in stages.

2. Buy in batches

Time to buy: a volatile market, a bear market bottoming out, or a bull market in a range;

Disadvantages: Wrong judgment on trends, high costs Higher than a one-time purchase;

The largest short-term floating loss ratio: if you double the purchase or over-double the purchase, even if there is a downward trend, you can control the floating loss at will before the position is full;< /p>

Advantages: Less one-time investment, high liquidity, low correction costs if trend judgment is wrong, floating losses can be well controlled when the number of batches is large, and it is easy to unwind in the short term.

How to control the position?

1. Determine the position at the market point.

Generally speaking, if the market is at a low level, there is huge room for upside, and you can take heavy positions. hold. If the increase is too large and it is in a relatively high and volatile stage, you can maintain a half position.

If the market begins to adjust downward, the position can be reduced to 10% or 20%. Heavy positions at low points, half positions at midpoints, and light positions at high points are key reference indicators for fund investment.

2. Determine positions based on the stage growth rate of the fund’s net value

In the current volatile market, fundamentalists can choose funds with a relatively small growth rate and a relatively small net value growth rate among promising theme funds. The low layout of theme funds avoids the mid-term adjustment risk faced by theme funds that have risen sharply.

3. Control positions according to investment preferences

For short-term investors, positions can be relatively high due to frequent position adjustments. But for long-term fund investors, it will be more important to control mid- and long-term positions. Investors can determine position changes based on their own investment preferences and operating styles.

Summary of key points in stock trading risk control

1. Control risks psychologically. In the process of stock market investment, it is not just the uncertainty of the market that causes serious losses to investors. , Investors' psychology is also one of the main reasons for operational errors

2. Control risks from an operational perspective. You need to learn to wait appropriately after selling a certain stock at a profit or after stopping the loss. Many investors just sell out today and buy tomorrow, holding the stock forever. Such an operation can certainly be profitable when the market is improving, but it will face greater risks in unstable markets.

3. Control risks from positions. Investors with heavier positions may have greater returns, but they will also take greater risks. Once there are new changes in the market, if the market chooses to go down, those with heavy positions will face serious losses. Therefore, investors should decide their positions based on market changes.

4. To control risks from stock holdings, the stock varieties held by investors should be divided into two parts: one part is a radical investment type used for short-term operations; the other part is used for medium and long-term investment Stable investment type. Reducing the number of types of holdings can improve the ability to respond quickly and thereby resist risks.

5. Control risks by setting stop loss lines. The maximum stop loss line depends on your average profit per transaction and your probability of buying stocks whose prices will rise. (Average return = the sum of the profit percentage of each stock transaction/the number of profitable stocks; the probability of a stock rising in price is the average success rate = (the number of historical profitable stocks)/(the number of all historical trading stocks).

6. Control risks through position management settings. When there is a definite trend reversal, never add to a position when losing money. There is nothing to be ashamed of if you suffer losses in stock trading, but continue to hold losing stocks and let the losses amplify, or even continue to do so. Continuously adding positions is amateurish and self-destructive behavior.

7. Control risks based on the return-to-risk ratio. Before buying each stock, pay attention to the historical return-to-risk ratio = (trading stocks. Success rate_average income increase)/(failure rate of trading stocks_average income decrease).