When buying a fund, it is also important to learn to make up the position. If you always buy a fund when the fund goes up, the cost of buying it is relatively high and the risk of chasing it up is relatively high. So when buying a fund, some investors like to cover their positions when the fund falls, so how many points are suitable for covering their positions? Should funds make up for the continuous decline? I have prepared relevant contents for your reference.

How many points is the fund suitable for covering positions?

Generally speaking, investors' ability to take risks is different and their trading habits are different, so there will be differences in covering positions. Generally speaking, when the fund loses about 5%, you can consider adding positions and buying them in batches.

For example, if an investor buys a stock fund, the fund will fall by 5%, the investor will increase his position once, and then the following fund will fall by 5%. Then investors are more optimistic about the fund, so they add positions for the second time and stop adding positions when the fund starts to rise.

Should funds make up for the continuous decline?

It depends on whether the fund needs to make up the position in the continuous decline. If it is in the early stage of the bear market, it is not suitable for covering positions, because the bear market is bottomless. Although covering positions can reduce costs, it will always fall, and the part bought by covering positions will also lose money. Therefore, it is suitable for clearing positions in the early stage of the bear market and covering positions at the end of the bear market.

If you want to be a long-term co-organizer, you can set up a fixed investment fund because the cost of each purchase is different. According to the smile curve principle of fixed investment fund, when the break-even point is reached, the fund can start to make profits.

I hope the above content can help everyone ~