It refers to investors selling some stocks and reducing their holdings.

1. The idea of ??reducing positions is very common in buying and selling stocks.

To reduce a position means to sell the stocks you hold but not to sell them.

For example, if you buy 1,000 shares, you think the current situation is unclear and don't want to sell them all, but you want to avoid some risks, so you can choose to sell 500 shares, which is reducing your position.

2. Generally speaking, buying a stock is called opening a position, chasing a rising position is called adding a position, temporarily selling some stocks is called reducing a position, and buying back after selling is called covering a position.

1) Investors also need to meet the following seven conditions to take advantage of the rebound in the fund's net value to lighten their positions.

A sustained rally will help investors reduce their positions.

Stock funds and index funds are suitable varieties for rebound and lightening up.

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Position reduction must be carried out under the premise that the fundamentals of the fund change, the fund's historical performance continues to be poor, and the fund's losses exceed the investor's ability to resist risks.

The rebound and lightening of positions must be combined with one's own risk resistance capabilities. The rebound and lightening of positions must be combined with the investor's investment goals and plans.

The nature of the rebound market determines the proportion of investors who rebound and reduce their positions.

When reducing positions after a rebound, the stability of the investment portfolio must be considered.

Lightening up and replenishing stocks should be combined.

2) Overweighting refers to the behavior of continuing to increase holdings of a stock due to continued optimism about a stock while the stock is rising.

When the market direction is determined, if investors are more certain that the trend can continue, they can consider increasing their positions.

It must be carried out under the guarantee of its own warehouse.

Please don’t consider it if the warehouse bottom is too shallow.

Overweighting refers to the behavior of continuing to increase holdings of a stock due to continued optimism about a stock during a rising stock price.

When the market direction is determined, if investors are more certain that the trend can continue, they can consider increasing their positions.

It must be carried out under the guarantee of its own warehouse.

Please don’t consider it if the warehouse bottom is too shallow.

3) How to increase or decrease your position: When the market falls, you can choose to increase your position in batches to reduce investment costs.

If an investor predicts that prices may rise in the near future, the overweight position will change from variable to underweight.

On the contrary, if investors predict that prices may continue to fall in the near future, then their accumulated positions will change from small to large.

When the market price rises, you can choose to reduce your position multiple times and take profits and exit the market in time.

If investors predict that prices may continue to rise in the near future, their positions will change from small to large.

On the contrary, if investors predict that prices may rise or fall in the near future, the position of reducing positions will change from more to less.