The latest four major stock operations in 2022. Adding positions belongs to fund management and risk control. It is also related to technology, and is closely related to the overall system and even to mentality.

So, how should you increase your stock position? Today, the editor has compiled some relevant knowledge for you to increase your stock position. Let’s take a look! The latest four major operations for increasing your stock position: 1. Pyramid increase method.

This method is relatively common, and many people also understand it, that is, we first buy a part of the bottom position, such as 50%, then add 30% when the stock price rises to a certain level, and then add 20% when the stock price rises. It is divided into three steps to complete each step.

Gradually reduce the quantity each time you add a position. Of course, it does not necessarily have to be three steps. You can also divide it into four steps and five steps. These require us to make decisions based on our own experience and actual conditions.

2. Inverted pyramid method of adding positions.

This is similar to the pyramid method of adding positions, but it’s just the other way around. That is to say, the first purchase is the least, and then it’s better to increase the amount upwards. This situation is usually applied when we are not too optimistic about the market when we open a position.

Test with a small position and then gradually increase the position.

For example: 1+3+5, 1+2+3+4, etc., which can be used in any combination.

3. Olive adding method.

Football is small at both ends and big in the middle, so this method of adding a position is to open a position with a small amount of money, then increase investment in the middle, and finally add a small amount to the position.

Generally speaking, you make a profit after opening a position, and then double the amount to catch up. If the price continues to rise, you will add the remaining amount, light at the two ends and heavy in the middle.

For example: 2+6+2, etc.

4. Equal proportion method of adding positions.

As the name suggests, the equal proportion method of adding positions is a method in which we divide the funds into equal parts and then buy them in batches, such as: 2+2+2+2+2, 3+3+3, etc. This method is suitable for any market situation.

The most important thing is that we need to allocate funds appropriately according to the strength of the market.

The pyramid method of adding positions in stocks means that the initial amount of funds entering the market is relatively small, and if the market direction is consistent in the future market, the position will be gradually increased.

1. Control the risk of adding funds.

When the stock market is unclear, step in with a small position; when the upward trend of the stock market is obvious, increase the position.

In terms of operating rhythm, adding positions is suitable for investors who combine short and medium positions. In terms of capital volume, adding positions is suitable for larger funds. When 80% of the positions are filled, there is no need to consider adding positions.

2. Expand stock returns.

Add positions when the stock is likely to rise, but be careful to set stop loss levels. Don't blindly add positions to increase capital risks, which may eventually lead to losses.

In addition, stocks are different from funds. What is important is to operate with the trend. When the stock price drops significantly, do not add positions at low prices. This can avoid increasing losses.

Tips for adding positions in the pyramid include: if the price drops to D1, stop loss and close; if it rises to U1, add 0.5 lots. The good thing about adding positions is that it can control the scale of losses and amplify profits at the same time.

The bad thing is that adding positions along the trend will greatly reduce the number of profitable transactions.

For example, if the price rises to U1, take profit and close; if it falls to D1, add 2 lots of positions. The advantage of adding positions against the market is that it can greatly increase the number of profits. The disadvantage is that if the loss does not occur, it will be done once it occurs.

It's a big loss.

What is the difference between adding a position and covering a position? The difference between adding a position and covering a position is actually active and passive: the so-called "adding a position" is to buy this stock on the basis of the original stock.

It is a behavior of continuing to be optimistic about a certain stock and continuing to buy more when the stock price falls or rises.

"Cover-up" refers to the act of buying in order to reduce the cost of the stock because the stock price has fallen.

To put it simply, adding a position is an investment technique, while covering a position is a passive response strategy adopted after being trapped.

In other words, adding a position is an active behavior, while covering a position is a passive behavior.

Although both of them are buying behaviors, the prerequisites for their occurrence are different.