In stock trading, in addition to learning how to select stocks and timing, you also need to learn position management.

Let me share with you what is the three-step position management method?

1. Entry conditions: 1. The market is in a dominant bullish trend, and at least the 20-day moving average will start to move upward after a few days of flattening.

2. There are obvious and sustained sector hot spots.

3. The target stock has current hot spot attributes.

4. The target stock meets the technical entry point requirements 2. Position management: 1. Open the first position according to the "three-point position management method" 2. If the first position is successful, open the second position.

3. Stop loss management: 1. The above-mentioned "guaranteed profit without loss" does not refer to a single operation, but to the overall operation.

2. Small losses must be accepted happily, and large losses must be avoided forever.

3. The importance of stop loss management lies in secondary protection.

Under the premise of position management, even partial positions will not be severely damaged.

4. The most stringent short-term stop loss method is recommended to use the "single K-line stop loss method" 4. Selling point setting: 1. Cycle exit method: The rising cycle of small bands is mostly 5-8 trading days, and when the cycle is reached, exit automatically

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2. Quantity can lead to elimination method: Changyang with heavy volume cannot continue its upward attack on the day or the next day, so be out first, or at least reduce your position.

Guliang is even more out of the game.

3. Exit method at the opening: After buying, the market will be long Yang on the same day, and the time-sharing attack will be terminated within half an hour of the opening of the next day.

5. Summary of key points: 1. Follow the trend, rather than predict the trend. Predicting the trend will inevitably be buried by the trend.

2. Do not seek to buy at the lowest price. After the turning pattern appears, start to try to open an adventurous position. If it is a false turning point, stop the loss in time for short positions.

3. Don’t ask to sell at the highest price, accept the second highest price.

4. Never cover your position.

Several points on three-point position management: 1. Successful trading must go through four dominant stages: "casual trading", "technical trading", "strategic trading" and "complete strategic trading".

2. The absolute majority of stock traders will stay at the "technical trading" stage in the process of learning technical analysis and cannot improve further.

Even if the actual combat skills are really good and they have made many achievements in the bull market, they lack awareness and ability to prevent market risks.

3. Technical analysis must be implemented within the framework of strategic management.

4. The essence of strategic management: awareness and ability of risk prevention.

In fact, it is effective management of funds.

5. Position management is an important means of strategic management.

Position management + stop loss setting = locked in risk.

6. Seek profit development on the premise that risks are locked in.

This market is not about how proud you are at the moment, but about who has the ability to win in the long term.

It's a marathon, not a sprint.

7. The essence of three-point position management is to leave the decision-making power of position size to the market, rather than your own subjective judgment or imagination.

8. Opening one-third of the first position has a subjective component. The premise is that: the market is in a bullish trend, individual stocks are at the point of explosive volume, and the time-sharing trend is in place.

9. The sign of successful opening of the first position is that the first position is more than 5% away from the cost of opening the position.

It constitutes a condition for adding a position. This condition may be completed within three to five minutes, or it may be completed within three to five days.

10. If the first position is not opened successfully, you will be eliminated with stop loss, or you will be eliminated by closing the market, or you may add another position when the conditions for opening the next position are met.

Any risks that occur are all locked within the local position.

11. When a position is successfully opened, the position will naturally increase. If it is better, it can be better. Pay attention to pursuing victory, but when something bad happens, the position will be automatically locked immediately.

12. Three-point position management is neither subjectively radical nor autistic and conservative.

The control over the size of the operating position funds is completely left to the market to help you determine it.

Because the "three-point position management method" sounds very simple, and because many stock investors have no awareness of position management at all, there are no rules for implementing position management. The consequences are: if you don't lose, you will lose, but if you lose, it will be shocking!

If the time comes, you can enter the market. Remember one thing: first build a tentative position. The upper limit of the position is one-third at this time, because after the signs of turning appear, there is no inevitable logical derivation - it must be reverse.

If the transfer is successful, you still need to save something!

If successful, the position will be increased; if unsuccessful, stop loss management will be strictly followed.