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The more stocks fall, the more they have to add positions. Why?

This is because the more you fall, the more you add positions, the faster you can return to your capital and earn more income. Generally speaking, in the purchase of funds and stocks, if you want to return to the capital faster, you need to constantly add positions, and when this stock falls, you will add positions, which will make our overall position heavier and heavier. Then the overall income may become better at this time. If this stock takes off in the back, it will have a very big blessing effect on our income situation. Generally speaking, this is a trend investment, which means that we think this stock will still take off in the future. Then at this time, I will go to buy a lot when the stock is at a low point. In fact, it can be understood as a partial bargain-hunting, but the magnitude is not that great. From the smile curve, if you buy more at the bottom, you will get more income when the stocks start to rise later, which is the purpose of adding more positions after falling. If you can't get higher returns, it's more dangerous to add more positions and even make your losses more and more.

the logic at this time is trend investment, which can get more benefits in the long run. Maybe in the short term, this stock will still undergo adjustment or retracement, but its bottom is not far away. If you invest at the bottom, it is the lowest buying cost. When this stock starts to rebound and rise, then you can sell it, and then the income you can get is the highest. This is a very common situation in stock trading. Buying at a low point and selling at a high point will make stock investors get the highest return.

Therefore, the more stocks fall, the more they have to increase their positions, because this is a trend investment. The heavier the position, the bigger our income will be, so the money we can earn at this time will also become more. Just at the same time, we have to take greater risks. The more money we make, the more money we lose. It depends on the specific situation of trend investment.