How much is appropriate for the fund to make up for every 2% decline? You need to consult relevant information to answer. According to years of learning experience, if we can get the appropriate answer for every 2% decline in the fund, we can get twice the result with half the effort. Here, I'd like to share some relevant experiences about how much the fund falls by 2% for your reference.
How much should the fund make up for every 2% decline?
For the strategy of covering positions, covering positions once every 2% decline and covering positions to 70% is a relatively reasonable strategy.
1. Suppose the total assets of your original fund are 1 10,000, and you can only invest 700,000 at most, that is, make up the position to 70%.
If you have been to Man Cang, you need to wait for a better chance to enter.
3. If the fund you hold is overvalued, then you should consider lightening or clearing the position.
Please note that investment is risky and you need to be cautious when entering the market. The above suggestions are for reference only, and investors need to invest carefully. Investors should make careful decisions according to their own risk tolerance and investment purpose.
Advantages and disadvantages of fund covering positions
The advantage of fund covering positions is that it can dilute costs. When the invested fund starts to make a profit, the cost will be gradually diluted, and the covered positions can be quickly returned to the original. When the invested funds begin to decline, covering positions can increase the number of funds held, thus withdrawing funds as soon as possible.
However, there are also some shortcomings in fund covering positions. First, covering positions will increase investors' losses. When the invested funds continue to fall, covering positions will further increase the investment cost, thus increasing the losses of investors. Secondly, there is financial pressure to cover positions, which requires investors to increase their investment, which increases the financial pressure on investors. Finally, covering positions is not suitable for all investors, but only for those investors who have a certain understanding of the fund market and can make correct decisions in time according to market changes.
Therefore, investors need to fully understand their risk tolerance and understanding of the fund market before deciding whether to make up the fund position, and carefully evaluate their investment ability and market judgment ability.
How much is the one-day decline of the fund suitable for covering positions?
There is no fixed standard for how much the fund falls in a single day, because it depends on your risk tolerance. Generally speaking, it is recommended to control your risk tolerance at the annual interest rate-annualized volatility =- 10% to -20%, that is, the one-day decline 10% to 20%, or the annualized volatility is 20% to 40%, so as to better control your risks. Of course, if you can take higher risks, funds that fall more than 10% in a single day can also consider covering their positions.
Time to lighten the position after the fund covers the position.
It is generally not recommended to lighten the position immediately after the fund makes up the position, because the lightening position should be completed in an upward trend, and it is best to lighten the position when the stock price is out of the buying cost and profitable. The advantage of lightening positions is that it can reduce the cost of holding positions, turn floating income into fixed income, and help us avoid risks better. If you want to reduce your position, you can operate in batches with 30%-50% positions, and it is not appropriate to clear all positions.
Fund 100 times to cover the position
The fund's 100 replenishment refers to the continuous replenishment 100 in the fund sales process. Usually, covering positions means that investors buy the same number of funds after the funds they have already bought fall. By covering positions, investors hope to increase their own income by increasing their fund shares.
However, there are certain risks in fund investment itself, and the rise and fall of funds are affected by many factors, including market environment, investment strategy of fund managers, and investment portfolio of funds. Therefore, when investing in funds, investors should fully understand the risks of fund investment and make reasonable investment decisions according to their own risk tolerance, investment objectives and market conditions.
At the same time, investors should also pay attention to controlling their own risks when covering positions, and avoid excessive covering positions or blindly following the trend. When covering positions, you should make reasonable decisions according to market conditions and your own investment situation.
This is enough to introduce how much the fund will make up for every 2% drop.