The first point: market positioning plus positions
Before adding positions, we must first judge the market situation and evaluate whether the general trend of the market is a rising bull market, a bear market that continues to fall, or a sideways volatile market.
The cycle of this market can be selected for nearly half a year or nearly three months, and then make the next decision after judgment.
The second point: evaluate the profit and loss of your position.
This is very simple. Generally speaking, the fund investment platform you choose will have a general data analysis of positions. After the net value is updated, you need to know that the fund you hold has lost several points at present.
Look at this data, combined with the previous point of 1, you can determine the intensity of your desire to add positions.
In a bear market, try to keep the position loss at 10- 15%. Below this range, the desire to add positions will be lower, and above this range, the desire to add positions will be stronger.
However, in the current volatile market, the degree of loss remains between 0-5%. Less is lower desire to add positions, and more is stronger desire to add positions.
Through these two points, you don't have to look at tomorrow's market, and you can have a desire to manage whether to add positions tomorrow. Knowing this will greatly reduce your anxiety.
The third point: evaluate the estimated price rise and fall on the day.
Before 3 pm every day, look at the fluctuation of the fund valuation, and then add this value to your position loss, and you can basically calculate the net value update and position loss that night, and then evaluate the necessity of adding positions that day in combination with the loss interval.
The fourth point: Look at the current historical PE (price-earnings ratio) score of this sector.
For index funds and sector funds with strong industry attributes, you can refer to their historical PE.
For example, the PE of infrastructure is below 1%, and it drops slightly, so the kinetic energy of covering positions is great, because it is already at the bottom of history.
For those sectors whose PE is already surprisingly high, the kinetic energy of covering positions should not be too high to make up for the three hesitations, and must be carefully considered before covering positions.
It should be noted that this is basically only applicable to index funds and sector funds, and some mixed funds with scattered positions may not be applicable.
The fifth point: just grasp the phased and affordable chips.
Many investors may have been thinking that their chips are more expensive than in previous months, so they should increase their positions. In fact, there is no need to be so entangled.
We don't need to compare the current price with the previous low point, just need to get relatively affordable chips this month.
The above five points complement each other and need to be combined with each other before deciding whether to make up the position.
At the same time, don't forget to combine your own actual situation and form a methodology that suits you. Rules and skills are dead, what we have to do is to learn and use them.