When the fund market is good, you can get better returns by adding positions. When the fund market is bad, you can spread the investment costs and reduce investment risks. When the fund market rises, you can get back your capital faster. There are differences between on-exchange funds and over-the-counter funds. So what is the appropriate way to add on-exchange ETF funds? Let’s find out together below.

How to increase the position of ETF funds on the exchange?

1 Look at the index corresponding to the ETF on the market, and add positions when it enters the undervalued area: ETF funds on the market are index funds, so investors can add positions by observing the corresponding index funds. When the market enters You can add positions when the area is undervalued. The lower the valuation, the higher the level of adding positions. When it is overvalued, it is necessary to build a corresponding position. It is easy to be trapped by adding a position to a high-valued fund, and it will also increase investment risks.

2. Adding positions when the fund falls: Adding positions when the fund falls can very well reduce investment costs. The lower the investment cost, the faster the return of capital, and the smaller the risk investors bear. The most taboo thing in fund investment is to chase the rise and kill the fall. When the fund falls, as long as the fund can rise in the future, there is no need to sell it. If you insist on holding it, you can usually get your money back.

3. Set the method of adding positions at a decrease: If investors are not sure when they can add positions, they can set a method of adding positions at a decrease, such as setting 10% as a decrease. When the fund falls by 10%, You can choose to build a one-level position, and increase the amount each time it falls. The amount of funds for the first-level position can be determined based on your own economic situation and risk tolerance.

Investment in ETF funds is very risky, so investors need to choose a suitable buying point to increase their positions. When purchasing on-site funds, you need to open a stock account before you can trade, so you also need to pay attention to the number of transactions. If you do not add a position once, you will need to pay a commission fee.