Before the formal science popularization, let me share a small detail. Many friends don’t know where to look at the position cost price. In the screenshot above, click on the fund and there will be a small cutout under the income. Click on it. Can see it.

Back to the topic, I wrote a popular science article earlier about "Why should we cover positions after funds fall sharply". The main point in the note is that covering positions can lower the cost of holding positions. My friends all said they understood. !

Later, in actual operations, I encountered new questions. The premise of covering up the position to increase the low-cost price is that the fund you bought suffered a loss and the net value dropped sharply and was lower than the cost price, so you need to cover up the position. So if the fund is large After the decline, the net value is higher than the cost price, but the income is reduced. Do you still need to cover the position? Or choose to stop profits in time?

If you make more money, it is not wrong to stop the profit in time. A detailed analysis of the specific situation is just a matter of making more money and less money. In fact, as long as you make money, it is not wrong in my opinion. I digress, and return to the question of whether to cover the position

Although covering the position in this case will increase the cost price, the share you own will increase. Let me give you an example:

You spend 100 Yuan bought 50 apples, each apple cost 2 Yuan.

The next day each item rises to 5 yuan, and you earn 50*5-100=150 yuan.

If each price drops to 4 yuan on the third day, you earn 50*4-100=100 yuan.

Compared to the day before, you lost 50 yuan, but the net value was still higher than the cost price of 2 yuan. Overall, you still made a profit.

At this time, you choose to cover your position and spend 100 yuan to buy 25 apples. Now you have spent a total of 200 yuan on principal and bought 75 apples.

The cost price has become higher, but the holding shares have also increased, and the benefits are reflected on the fourth day.

On the fourth day, if it rises back to 5 yuan, you will make a total profit of 75*5-200=175 yuan. If you do not cover your position, you will at most return to the state of the second day on the fourth day. Not making more. I am just giving an example. It is easier to understand with the same increase. In fact, if it falls by two points today, it may not rise back to two points tomorrow. Whether Apple can return to 5 yuan on the fourth day and the next day depends on luck. , the purpose of covering the position is to make up for the loss of the day's decline as soon as possible even if it does not rise back to the original position. Of course, it is also possible that the price will continue to fall after covering up the position. I only cover the position when it falls sharply and ignore the small fall. Don't think it's unnecessary to cover your position just because the net value is higher than the cost price after a sharp drop. In any case, the purpose of covering your position is to have more shares and earn more.

A good chicken that can make money, look at its historical net value, it is always going up and will not always fall below your cost price, so when you encounter a chicken that you are optimistic about, make a profit If the situation drops sharply, you can be brave enough to cover your position