For a mature trader, besides having his own trading system and trading style, he must also have the management of position control, and position management is a means of risk control, because no matter how strong our technology is, no matter how high the probability of technical or fundamental analysis is on the disk, we can't ignore small probability events. Many people have learned a lot, have strong technical analysis ability and high success rate, but they have never been able to do well. What is the reason? The core is that they can't recognize it and can't accept it.

So from the perspective of trading, what is the practical significance of position management?

1, risk control, accident prevention

We can grasp the laws of the market through the study of technical analysis and value analysis, but there is not much difference between the probability of a good trader and a three-year-old child to judge a transaction alone, so we must never use jiacang to place an order for the operating position, otherwise the loss with a small probability will be too great for our funds and psychology.

2. Lock in the dominant position and expand the profit opportunities.

What is the most risk-free transaction? In fact, the cost is negative or zero, for example:

When we open a long position at 50 yuan, then the market rises to 70 yuan, and the stop loss moves to 55 yuan, the cost at this time is -5 yuan, so the cost at this time becomes negative, and our mentality will be good and our operation execution will be strong.

Position control is the most effective guarantee to ensure that the cost is negative or zero, because after the market rises to 70 yuan, when we fall back and consider adding positions to expand the results, we should manage the second position of our position and the corresponding stop loss at this time, so that our cost can still be zero or negative, and once the defense is successful, the profit will run away!

Second, the common ways of position control

Knowing why we should learn position control, we should learn specific skills and routines. As we said, the core purpose of position control is to lower the average price and expand profits, so this is the premise of skill, that is to say, in a long area and position market, there are two common ways to open positions for the first time, the second time or the third time.

Project 1: independent warehouse in the same location.

Take stocks as an example. If my total fund is 200 lots, I will find a good long-term opportunity at 10 yuan. After opening the position 100 lot, the market drops to 5 yuan, but the rising structure of the market has not changed at this time, so we can open the position again 100 lot, then our average price will be in 7.5 yuan, and then our cost will come down and reach.

Type 2: Divide warehouses in the form of bottom triangle.

This method of dividing positions is generally used in some positions with large trading range, for fear of taking advantage of short positions. It takes 20% to open a position for the first time. How does the market continue to increase its position by 30% at a certain position? At this time, because the lower position is heavier than the upper position, the average price will be pulled faster. Similarly, let's give another example:

Open a 20% position with me at 15 yuan. When the market falls to 10 yuan, I will increase my position by 30%. At this time, my average price was 12 yuan, and the market continued to fall to 5 yuan. I choose to increase my position by 50%. My average price will fall to 8.5 yuan. Careful friends will find that if we are all in the same position plus position, it is 60. When it falls to 10 yuan's 33% position and 5 yuan's 33% position, then our average price is 10 yuan, which means that this way can reduce our costs better and faster.

However, everything is two-sided. We chose to divide the positions in order to prevent the market from continuing to rise. How can the market rise after the first position is opened, then the profit of the same position must be greater than that of the triangle position. After all, a position is 50% and a position is 20%. These are some common methods to control positions.

The above are mainly stocks. In the leveraged trading of futures or foreign exchange, you must never place an order in Man Cang, because it is too risky. Generally, less than 30% of the account funds are used for warehouse sharing, and 70% of the account funds are reserved for risk prevention.

Third, the ultimate goal of position control

The way to tell you, and then explain the ultimate goal of the following position control, whether it is the same position or triangle position, the core is to make our risk in an acceptable state.

Because you must set a stop loss after placing an order, no matter how you add a position, as long as the average price and stop loss are in a clear position, and whether you can bear the stop loss psychologically or financially, you can decide how to add a position by yourself, not necessarily according to the above. The above only tells you two commonly used ones. Of course, under the condition of controllable risks and losses, we can choose not to add a position at one time and then keep it, or stop loss or make a profit.

So this is our answer to this question. I hope it will help everyone. The key trading range must be divided into positions, so how to analyze the key trading range? You can read the following articles I wrote before, hoping to help my old fans and keep following me for a few minutes every day. I will bring you the core technology of the industry. If you feel good, remember to like it, thank you!