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Every time the fund falls, it covers the position, right?
Covering positions when the fund falls can reduce costs, so some investors prefer to increase positions when the fund falls, but because they don't know much about the fund, they will have some doubts. For example, is it right for the fund to cover its position every time it falls? The fund fell by 30% and its position doubled. When can I return to my original position? We have prepared relevant contents for your reference.

Every time the fund falls, it covers the position, right?

Funds don't have to cover their positions every time they fall, because some funds will fall for six or seven days in a row when the market is bad, so there is no need for funds to cover their positions every time they fall. Generally speaking, the fund makes up the position first because there is no problem with the fund itself, and secondly, it is recommended to make up the position when the fund has development prospects.

Make up the position also depends on the situation. Although covering positions can reduce costs, if the fund itself is not good and always falls more and rises less, then covering positions will only aggravate risks and increase losses. You must choose a good fund to cover your position.

The fund fell by 30% and its position doubled. When can I return to my original position?

When a fund falls by 30%, it is generally a deep cover position. It is impossible to know when the cover position will double, because there are many funds, and the situation of each fund will be different. Just be careful not to chase after the heights when covering the positions.

For example, covering the position when the fund rises will increase the risk. If you are optimistic about the fund, you can choose to cover the position when the fund falls, which can reduce the buying cost and reduce the risk. However, when the fund falls by 30%, it is a case of falling more. If you want to recover your capital quickly, you must increase the strength of covering your positions, but poor investment will aggravate your losses, so you must be careful when covering your positions.