Timely covering the position after the fund falls can lower the cost of holding the position. When it rises back, you can earn more. This is the principle of covering the position, but you must master the time of covering the position. Let me tell you something below. When is the right time to cover a position?

When is the appropriate time for funds to cover positions?

1. The market is at a low value, that is, the entire market is relatively sluggish. At this time, funds are cheaper and the cost of covering positions will be lower.

2. Fund retracement. When the fund retracts, the net value will be at a low value. Generally, look at the maximum retracement rate within 3-5 years.

3. When the fund rebounds, in fact, covering positions does not necessarily have to happen when the fund falls. It can be done when the fund rebounds or rises. As long as you are optimistic about the fund and have confidence, it will be fine. .

You can cover your position under these three circumstances: 1. The market is on the way down, and you can cover your position when the market stabilizes and begins to reverse upward. 2. When the market is in a rising stage and the probability of rising later is high, the sooner you cover your position, the better. 3. When the market fluctuates up and down, fixed investment is a good choice, which can spread the cost evenly.

When planning to cover their positions, investors should think carefully about these issues: whether they are optimistic about the fund and fund manager in their hands; whether they are optimistic about the market outlook; what their risk tolerance is; determine which fund to cover their positions, etc. wait.

After reading the above introduction, I believe everyone has a more comprehensive understanding of the issue of when is the appropriate time for funds to cover positions. Final reminder: When covering a position, in addition to thinking about the above issues, you also need to take measures according to the genetic conditions. After all, different types of funds have different strategies for covering a position.