Calculation formula for fund cover-up in 2021_How to accurately cover positions in actual combat When buying a fund, it is inevitable that there will be a decline. In order to reduce losses, we will also choose to cover up positions when there is a decline, because after cover-up, as the share held increases,
Its holding costs will fall.
But what are the calculation formulas for fund replenishment? The following is the calculation formula for fund replenishment in 2021 collected by the editor and how to accurately replenish the position in actual combat.
Hope this helps everyone.
Fund cover-up calculation formula Cost calculation formula after cover-up = (cost price of first purchase fund × first purchase quantity + cost price of cover-up fund × cover-up quantity)/(first purchase quantity + cover-up quantity).
For example, an investor buys 1,000 shares of the fund when the net value of the fund is 1.5 yuan. After buying, the fund declines. When the net value of the fund drops to 1.0 yuan, an investor then covers the position by 2,000 shares. After covering the position, the investor
The holding cost = (1.5×1001.0×2000)/(1002000)=1.167 yuan.
After covering the position, its cost dropped by 0.333 yuan.
How to accurately cover positions in actual combat? 1. The premise of covering positions is that the decline is relatively deep and the loss is large.
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 unwind the position.
If the current price is more than 20% to 30% lower than the purchase price, or even when some stock prices are prematurely cut off, you can consider covering your position. The room for further decline in the market outlook is relatively limited. This is one of the key skills on how to accurately cover your position in actual combat.
2. If an important technical position is penetrated, you can consider overcoming fear to cover your position.
Important positions such as the half-year line and the annual line are penetrated by the panic atmosphere. Generally, if the fall of these positions is less than 5-10%, a strong resistance rebound will occur in a short period of time, and investors can quickly grab chips.
3. When covering a position, you must pay attention to strengthening the position and not making up for the weakness.
Investors must cherish the funds that can be used to cover positions. They are like precious bullets. Whether they can defeat the enemy depends on these funds.
You cannot easily cover your positions for weak stocks that have been falling all the way. These weak stocks mainly show small trading volume and low turnover rate. In the market performance, when the market rebounds, they rebound weakly, but when the market falls, they can easily fall further.
.
Once a stock is defined as a weak stock, one should be very cautious in covering its position. This is a point that must be paid special attention to in actual practice on how to accurately cover its position.
4. The most common mistake when applying the position covering strategy is to rush to cover the position before the stock price drops to the bottom, which will lead to the deeper consequences of covering up the position.
Therefore, covering positions is only suitable for use after the market trend has truly bottomed out. Do not spread the market prematurely in the downward trend of the market, otherwise it will not only fail to unwind the position, but also increase the financial burden.
What are the techniques for covering positions? Tip 1 for covering positions: You cannot cover positions in the early stage of a bear market.
If the stock price does not fall deeply, you will not cover your 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 unwind the position.
If the current price is more than 20% to 30% lower than the purchase price, or even if some stock prices are sold prematurely, you can consider covering your position. The room for further decline in the market outlook is relatively limited.
Tip 2 for covering positions: Don’t cover positions before the market stabilizes.
Positions cannot be covered when the market is in a downward channel or when it rebounds, because when the stock index falls further, it will drag most individual stocks downhill together, with the exception of a very small number of individual stocks that have bucked the trend and strengthened.
The best time to cover a position is when the index is at a relatively low level or has just reversed upward.
At this time, the potential for rising is huge, the possibility of falling is minimal, and it is safer to cover the position.
Tip 3 for covering positions: Do not cover weak stocks.
Especially those unmarketed stocks that do not rise when the market rises, but fall when the market falls.
Because the purpose of covering a position is to use the profits of the stocks covered later to make up for the losses of the previously covered stocks. Since this is the case, there is no need to limit yourself to covering the original covered stocks.
It doesn’t matter what kind of product you want to cover the position. The key is that the product you want to cover the position should achieve the maximum profit. This is what needs to be considered.
Therefore, if you want to cover your position, you should cover strong stocks, not weak stocks.
Tip 4 for covering positions: Do not cover the super dark horses that have surged in the early stage.
There have been many leading faucets in history. After emitting a brief dazzling light, they then entered the darkness of the long night.
For example: Sichuan Changhong, Shenzhen Development Bank, China Jialing, Qingdao Haier, Jinan Qingqi, etc. They have a long decline cycle. They often fall deeper after falling deeply, and there is a deeper bottom after hitting the bottom.
If investors spread out such stocks, they will only get more and more money, and they will get deeper and deeper, and eventually they will be trapped in the quagmire.