China stock market is dominated by structural market. If the fund continues to fall, it can cover the position, because when the fund falls, the cost of buying is relatively low, and the low cost can be diluted higher than the cost of buying the fund. For example, the investor's cost is 3 yuan, and when the fund falls to 2.5 yuan and 2 yuan, they make up their positions respectively, so the cost at this time is (3+2.5+2)÷3=2.5 yuan.

Second:

It is not suitable for covering positions at the beginning of a bear market, because there is no bottom line in a bear market. Although covering positions can reduce costs, it will always fall, and the part bought by covering positions will also lose money. Therefore, it is suitable for clearing positions at the beginning of the bear market and covering positions at the end of the bear market.

Third:

For long-term investors, if the fund continues to fall, you can set up a fixed investment, because the cost of purchasing a fixed investment is different every time. According to the smile curve principle of fixed investment fund, when the break-even point is reached, the fund can start to make profits.

Fourth:

For short-term investors, if they can't hold it for a long time, it's best to clear their positions when the fund rebounds to avoid chasing up and down.

Covering positions (money market terminology) means that investors buy the same kind of securities on the basis of holding a certain amount. Covering the position is a buying behavior because the stock price falls and in order to reduce the stock cost. Covering positions is a passive contingency strategy after being locked up. It is not a good method to solve the problem in itself, but it is the most suitable method in some specific situations.

Five main points

First, you 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.

Second, the market did not stabilize and did not cover the position. When the market is in a downtrend channel or a relay rebound, you can't make up the position, because when the stock index falls further, it will drag down most stocks, except a few stocks that are strong against the market. The best time to make up the position is when the index is at a relatively low level or just reversed upward. At this time, the potential for rising is huge, the possibility of falling is the smallest, and it is safer to cover the position.

Third, weak stocks do not make up. Especially those stocks that go up and don't go up, but fall when the market falls. Because, the purpose of covering positions is to make up for the loss of quilt stocks in front with the profit of covering positions in the back, and there is no need to limit yourself to make up the original quilt varieties. Making up positions is not the key, but the key is to maximize profits, which is the key consideration. Therefore, to make up the position, we must make up the strong stocks, not the weak ones.

Fourth, the super dark horse that soared in the early stage does not make up. There used to be many faucets in history, which stepped into the darkness of the long night after a brief dazzling light. For example: Sichuan Changhong, Shenzhen Development, China Jialing, Qingdao Haier, Jinan Qingqi, etc. They have a long decline cycle, often falling deeply and then falling deeply, and there is a deeper bottom after bottoming out. Investors will only make up more and more such stocks, get deeper and deeper, and eventually get into a quagmire.

Fifth, seize the opportunity to make up the position and strive for a success. Never fill the position in sections or steps. First of all, ordinary investors have limited funds and cannot afford to share many times. Secondly, covering the position is to make up for the previous wrong buying behavior, and it should not be the second wrong transaction itself. The so-called step-by-step approach is to defend the careless purchase behavior. If you cover the position many times, the more you buy, the more you buy, and the more you are quilted.