In the investment of funds, I believe that most investors have heard a saying that the more funds fall, the more they want to buy. Because, when the market falls, you can get more low-share funds by covering positions and spreading the cost. How does the fund cover its position on the way down?

First, make up the position at the bottom of the market or when it starts to rebound.

In the case that the market trend is still unclear, if the market only drops slightly, then the effect of spreading the low cost by adding positions is very limited. If the market falls sharply after a small drop, the positions added during the previous small drop will become higher, but it will be a burden to spread the cost. If investors can simply predict the market trend, then when the market is in a downward trend, it is not suitable for adding positions. When the best time to cover positions is close to the bottom of the market or the market is about to reverse, this way of covering positions has certain requirements for investors. If you are a fledgling investor, you can cover your position in a fool's way when the market falls sharply.

Second, control funds and make up positions step by step.

First of all, adding positions is not an overnight thing. No one can guarantee that the market will reverse when it falls. Therefore, if you have the funds to cover your position, don't cover your position all at once when the market falls. If the market continues to fall, there will be no bullets. Of course, the funds should not be too small. For example, the capital you hold is 50,000 yuan, and the covering time is 1000 yuan. This 1 1,000 yuan has little effect on the low cost of communication of 50,000 yuan. We can divide the funds for covering positions into three to five batches, gradually add positions, and reduce the probability of operational errors through repeated operations.

Third, look at the funds held before covering the position.

Some investors only remember to cover their positions when they fall, but forget to analyze whether the funds they hold now are worth covering their positions before covering their positions. If the fund has been abnormal, the original state will change. How can you cover your position? The fund continues to fall for a long time, and it is meaningless to make up the position. First of all, analyze the factors of the decline of holding funds. If it is only affected by the market, it will fall simultaneously, but the fund itself is fine. It is possible to make up the position. If the fund lags far behind other similar funds or corresponding indexes, and the basic trend has changed, we should consider replacing the fund. Choose a more stable and flexible product for replacement.