To cover a position refers to increasing the money you spend to buy a fund. For example, if you bought 100 shares at a price of 1 yuan before, and then the fund dropped to 0.9 yuan, and you bought another 100 shares, then the cost It becomes 9100/200=0.95 yuan, and your cost of buying funds will also be reduced.

So under what circumstances do we need to cover our positions? There are three situations. First, the market trend is not good and has been in a downward trend. If you think it is about the same, you can cover your position. If there is a big drop, cover the position, or if the market drops small, you can cover the position; second, the market is on an upward trend, and aggressive players can Continue to cover positions and take profits appropriately; thirdly. The market is in a volatile stage. At this time, you can set your own psychological expectations for covering positions. For example, if it falls by 5%, buy it, and if it falls by 3%, buy less to reduce costs.

In fund investment, buying is not the most difficult, selling is the most difficult. Because everyone wants to sell it at the peak, but the market situation is unpredictable. We can only say that selling at the price we have in mind is better than losing money. There are several ways to stop profits of funds: Target income stop profit method. The annualized income of general funds is about 10% to 15%. The conservative type can stop profits in time when the target annualized rate of return is reached, and the radical type can stop profits in time when the target annualized rate of return is reached. Players can set 20% or even 30%. Maximum retracement stop-profit method: The maximum retracement refers to the difference between the highest and lowest fund gains within a certain period of time. It is generally applicable in bull markets. The batch profit-taking method means that after reaching your expected rate of return, you first sell a part, and then sell a part again when the price rises, so as to maximize your profits.

During the fund's replenishment process, we may also miss a good opportunity to replenish our positions due to our own hesitation. For example, if we think that the market may be lower, we will not buy it this time and then buy it next time, but there are Many times it is not what you think. In the investment market, it is not about buying vegetables at the vegetable market. Sometimes we need to make timely and decisive decisions.