I have practiced the method of covering positions 48 times, and the effect of buying funds is not good.

1, function

Buy stocks at a lower price, so that the unit cost price drops, with a view to rebounding and throwing out after covering positions, and make up for the losses of high-priced stocks with the profits earned by buying stocks after covering positions.

2. Benefits

Stocks that were originally bought at a high price are difficult to return to the original price because they have fallen too deeply. By covering the position, the stock price can close the position and leave without rising to the original high price.

Can't make up the position at the beginning of the bear market;

People who speculate in stocks understand this truth, but what if some investors can't tell the turning point between bull and bear? There is a very simple way: the stock price will not fall deeply and will not make up the position.

If the current price of the stock is 5% lower than the purchase price, there is no need to cover the position, because any intraday shock may solve the problem. If the current price is 20% ~ 30% lower than the purchase price, or even some stock prices are cut off, you can consider covering the position, and the room for further decline in the market outlook is relatively limited.