Why use private equity funds to buy corresponding stocks? What are the advantages of doing so? How to understand this private equity fund? The following is the method of buying stocks with private equity funds brought by Bian Xiao, hoping to help you to some extent.
Use private equity funds to buy stocks.
The main purpose of private equity funds is to invest in private equity funds, including buying stocks, bonds, real estate and other different asset classes. Private equity funds provide investors with diversified investment opportunities by raising private equity funds from specific investors and through professional investment strategies and management.
Private equity usually refers to funds raised by private equity institutions, which is different from public funds. Private equity funds are only open to certain qualified investors, such as institutional investors or high-net-worth individuals. These qualified investors invest in private equity funds and hand over the funds to fund managers for investment activities.
The use of private equity funds is mainly reflected in the following aspects:
Specialized investment: Private equity funds provide sufficient capital for private equity funds so that they can make more in-depth and comprehensive investments through professional investment teams and research and analysis. The specialized investment ability of private equity funds enables investors to obtain more valuable investment opportunities and professional investment management.
Diversified investment: Private equity funds invest in different asset classes, such as stocks, bonds and real estate, through diversified investment strategies and asset allocation. This diversified investment can reduce investment risks and provide investors with broader investment opportunities.
Access to professional opportunities: Private equity funds can usually get some professional investment opportunities that are difficult for public investors to obtain. For example, private equity funds may invest in non-listed companies, start-ups or other targets with high growth potential, and these opportunities are more difficult for public investors to grasp.
Long-term investment: Private equity funds usually have a long investment period, so they can be used to invest in assets with a long holding period. This enables private equity funds to make long-term investments and better adapt to market fluctuations and changes.
Covering the final cost of inventory
Generally speaking, buying after the stock price falls is called covering the position, so the falling stock price means that the cost price of the investor's account is higher than the current stock price at this time, so the cost of buying after falling is lower than that of buying before, so the cost will be reduced after covering the position. Cost price after covering positions = (total cost of first purchase+total cost of covering positions) ÷ total stocks held.
For example, an investor buys 1000 shares at the price of1000 yuan. Suppose the stock price falls to 8 yuan covering 1 0,000 shares, then the cost at this time is (10+8)÷2 = 9 yuan, in which 9 yuan does not include the handling fee. Therefore, investors do not need to calculate the cost price after covering their positions. When investors make up their positions, the system will automatically count the cost price, which is not included in the handling fee.
In addition, investors should also pay attention to the difference between adding positions and covering positions. If the cost of adding positions is higher than the cost of buying stocks for the first time, the cost will increase after adding positions.
How to buy short positions in stocks?
1. For strategic short positions, the number of stocks bought can be far more than the number of stocks held in the original hands, which can minimize the cost of holding shares.
2. Tactical short-term trading, the number of stocks bought should wait for the number of stocks held by the original hand or less. The purpose of this is: first, it can effectively control risks. Because tactical short-term profit is the main way to make up the position, we don't consider the investment value of a stock or whether it has oversold, and we don't pay much attention to the general trend.
Therefore, this strategy of covering positions has certain risks while making quick profits, and it is not suitable for Man Cang or heavy positions.
3. Tactical covering positions In order to improve work efficiency, the intra-day "T0" method is often used. If the number of stocks bought by investors exceeds the number of stocks held in their original hands, they can only sell the number of stocks held in the original day at most, thus losing the favorable conditions of "arrival".
How to make up the position after the stock is opened?
The "opening a position" in a stock refers to the process in which investors choose a stock and start buying and holding it. When investors open positions, they choose the right time and price to buy stocks according to their own judgment and analysis.
After the stock position is established, if the stock price still has room to rise, investors will choose to continue to increase their holdings.
The pricing of covering positions usually needs to be combined with market conditions and personal investment strategies. The following are some common pricing methods for covering positions:
Technical analysis: according to the stock price trend, chart shape and other technical indicators, judge the appropriate position to cover the position. For example, make up the position when the stock price falls back to the key support level or near the moving average.
Fundamental analysis: pay attention to the fundamental factors such as the company's financial situation, performance and industry prospects, judge the value of the stock in combination with the valuation level of the stock, and choose the right time to make up the position.
Step-by-step covering positions: covering positions in stages, covering a part of positions after each stock price adjustment to a certain extent, so as to average costs and control risks.
Break-even method: Set a target price or profit-loss ratio according to the profit-loss situation of the stock already held, and make up the position when the stock price is adjusted back to this price or profit-loss ratio.
The pricing strategy of covering positions varies from person to person, depending on investors' risk tolerance, investment objectives and market expectations. It is important to judge carefully in the decision-making process and follow your own investment laws and risk control principles.
Please note that the above contents are for reference only and do not constitute investment advice. Before trading stocks and covering positions, it is recommended that you fully understand relevant knowledge, do a good job in risk assessment, and consult professional financial institutions or financial consultants.