First of all, under normal circumstances, selling when the price falls is low and buying when the price rises is high. Killing the fall to chase the rise is what others commonly call leeks. Why do we add more positions as it falls? Because stock funds fall, as long as you don't sell, the losses you will suffer are dynamically unknown, which means you still have a chance to make a comeback. Secondly, if stock funds fall, if they want to speed up the return of capital and profits, they will choose to add positions when they are at a low price to make up for the losses at the original high price. This is why the more you fall, the more you add to your position. The premise is that you have optimistic and firm confidence in the prospects of the stock funds you hold.
The strategy of buying step by step when it falls and selling step by step when it rises. The core risk he has to face is whether the stock selection is one that will never come back after it falls. For those who like to actively speculate in something, they often choose something that has the possibility of never coming back if it falls in the long term. For example, there were so many speculators of LeTV stock at the beginning. Even if Mr. Jia has not returned to China, there are still people speculating. . But it is not difficult to choose a stock that can recover after a decline, such as an ETF type.
If you buy when the price falls, you will have to bear the book losses for a long time. The psychological pressure during this period is difficult for most ordinary people to bear.
If you grade when the price falls, When buying, it often rises just after buying a small amount, and does not fall below the lower buying price. Especially many people choose a lot of stocks and set a price below which I will buy. Originally, it is a price lower than the set price. It's not easy, and if you don't buy a lot at once after the price drops, it will easily rise a little or stop selling or sell and lose it. You have to face the problem of whether to make a small profit or to chase the rise and build a position. If you buy a lot at once, you will face the problem of not being able to cover your position in stages if it continues to fall. Instead, you have to consider whether to lighten your position to reduce losses. Therefore, even if you choose the falling position-building strategy, you still have to face the human torture of chasing the rise and killing the fall.
If you buy enough during the decline of this strategy, you will face two major tests. The first is the torturous feeling of having nothing to do after the funds are occupied (equal to the feeling of being stuck). Losing subjective initiative is harmful to the market. Stock trading is a huge test for most ordinary people. The second is how to suppress the urge to unwind when he starts to rebound after enduring a long period of losses.
People who don’t have much money to begin with will suffer a 20%-30% book loss during the incubation period. Assuming that you overcome all the above difficulties, you can make a huge profit of 50% in one or two years, but You want to get married, you want to buy a house, your wife scolds you for being a prodigal, all of which are lost in the stock market, and surgery costs money. When your personality at home is a typical example of "unsuccessful stock trading", you can't stand straight at home. At that time, it was still unknown whether the little money you lurked in the stock market would see the dawn of victory.