Ordinary retail investors basically have full and short positions. If you don't buy or sell stock for a minute, you will feel that something is missing. Ordinary retail investors are mostly light positions at the bottom. Dried top full. So, how does Niu San control position ?
is a short-term master. is mainly for boarding. Chasing ups and downs. Only when there are more than three boards can they enter the market. If there are three, there must be five, and if there are five, there must be seven. This is what they think is the law. The net value of the account has grown rapidly, and there are also many drawdowns. But now with the strict supervision, especially the suspension system for monster stocks , it is difficult to operate stocks above the third board. Or it basically doesn't work. This kind of person has a very sensitive short-term sense of smell. Good control too. Often the position is full at the moment the market starts, and the position is short and light when the market goes bad. It is possible that a full position today may be empty tomorrow. The position is unpredictable, and the decision is completely based on the market trend of the day. Need to have a very keen sense of the plate. It is generally impossible to learn. The holdings of and stocks are also divided into positions. It is possible to buy and sell from three to five to a dozen in a day. What hot spots to chase what. Do not focus on the long-term trend. Bunt-based. This type of person is a very small number of masters, and it is more related to personality. Only by giving full play to the advantages of human nature and overcoming the shortcomings of human nature can we achieve success. Maybe you think that this stock is going to take a light position when he has a heavy position, and maybe you think this stock is going to have a heavy position when he has a light position. Rather than saying that he is a master of short-term position control, it is better to say that he is a master of character and emotion control. If you can't control your emotions, it's best not to have a crush. We normal people basically can't control our emotions in front of the constantly beating screen. Will be swayed by the market at any time. In the end, they chased the ups and downs and returned in defeat.
The other is a medium and long-term master. focuses on value investing. Buy what you think is valuable when others are panicking and sell when others are greedy. This style accounts for slower growth in net worth and less drawdown. Full warehouse through bull and bear. Focus on the overall situation, lay out the general trend, and do not change your views for small fluctuations. Have a deep and persistent belief in the valuation of individual stocks. Any outside news can't move the holdings. Any short-term fluctuations will not affect the judgment. In a word, in addition to thinking that there is a systemic risk in the market and , it is mainly holding a full position. In the early stage, we must be quite precise about individual stocks and sectors. Generally focus on one sector or one or two individual stocks. Although this type of person is related to personality, vision, patience, and perseverance are indispensable. Emotions have little effect. Because sooner or later something of value will be reflected through the rise in stock prices. Even if you are caught in the short term, you can make money in the long term. It is something that most people can learn. The most successful is Buffett . Never look at the market when buying individual stocks. Both go deep into the market and stay away from the market. Going deep into the market is a very in-depth research on individual stocks, and has a certain understanding of the valuation of individual stocks, and believes that the market will not underestimate any valuable individual stock.
"333 position control method", a very simple understanding is that if the position is ten levels, then first buy 3 positions, then buy 3 positions, and finally follow 3 positions. So do the 333 position control method.
333 The importance of position control method:
1. Successful investment = objective and concise rules + patience in waiting for opportunities + rationality in controlling positions + decisiveness to stop losses quickly + courage to expand profits.
2. The stock market cannot be short or long, but in such a random stock market, as long as the positions are well managed, you can still make money.
3. Position management is the technique of deciding how to enter the market in batches and how to stop loss/profit and leave the market when you decide to be long on a certain investment object. Do a good job in every link of entry, stop loss and take profit.
333 Case diagram of position control method:
1. Firstly carry out the operation of 3 warehouses on the selected stocks, and can properly reduce the position when pulling up for the first time.
2, after the adjustment, the golden cross appears, and the operation of to increase the position of can be performed. When the second fast and height is pulled up, the high sell operation can be performed when the price is higher.
3. Use this operation to achieve reasonable control over positions. effective profit. The application of
333 position control method:
The so-called 333 position control method can not only effectively control the position, but also can make a stable profit, and there is another usage. It is to untangle the operation.
1. If individual stocks are trapped at a high position, it is reasonable to increase the position for the first time according to the 333 position control method.
2. When rebounding to a high level, control the position and reduce the position.
3. With this cycle, the operation of adding and reducing positions is carried out continuously, and the 333 position control method is successfully used for unwinding operations. Then it was successfully unwrapped.
333 Precautions for position control method :
First of all: optimistic stocks decisively buy 3 layers.
Second: Optimistic stocks must go through comprehensive analysis and judgment, rather than just buying any stock you see.
Finally: Even the best stocks have a probability of falling, so if the selected stocks really fall, you have to make another plan.
Warm reminder: buy a stock, up to 70% of the position, never full of positions. The remaining 30-40% of the position is to sell high and buy low during the rising process of stocks, so as to reduce costs and increase profits.
position management principles
1. Diversified positions, buying in batches Very big.
Growth stocks have a characteristic, especially in industries and individual stocks in the early stages of growth, they will face many uncertain factors, such as competition in the industry, industrialization of new technologies, etc., so too concentrated holdings, the risk is very high.
top experts can get it wrong, let alone ordinary investors. For example, optimism.com, Wangsu Technology , Shenwu Environmental Protection, Baoqianli and other individual stocks.
However, if it is over-dispersed, it is not advisable. Although the risk is dispersed, it is easy to manage and track because of the large number. Sometimes it is easy to lose sight of the other. We advocate moderate decentralization. Here is a shareholding model we commonly use, which is the "3331" structure.
means: if you have 1 million funds, it is advisable to hold three stocks in separate positions, 30% of the position in each stock, and then leave 10% of the cash, 10% of the cash can be used as T+0, if you do it skillfully , This 10% of the funds can be used 9 times a day, which is equivalent to leveraging 900,000 funds with 100,000, and the capital utilization rate is very high.
Buy multiple times: As shown in the table at the beginning, it is easier to recover the loss if the loss is less than 20%; but when the loss exceeds 20%, it becomes more and more difficult to recover the cost. Therefore, when there is a 30% loss in the stocks we invest in, only by making up a large amount of positions can we speed up the solution, and this situation is often caused by your misjudgment, which puts yourself in a passive situation.
No one can buy at the lowest point and sell at the highest point, but they can execute multiple buying strategies.
1) For example, if a stock rises by 8% after buying, you may be right. At this time, you can continue to increase your position to buy, but the maximum position needs to be controlled. After the increase exceeds a certain amount, you cannot buy again.
2) If a stock falls by 10% after buying, you can try to buy another position to reduce costs. If it falls by another 10%, you may have made a mistake in your judgment, and you need to be cautious even if you increase your position at this time.
2. According to the change of profit and loss probability, timely adjust positions Time to add positions. For example, every time the judgment before the stock market crash comes, once the judgment is correct, more than 30% of the retracement can be avoided.
When the market is bad, don't bet too much; when you are not sure, don't bet too much; when you don't understand, don't bet too much. When a big opportunity comes, don't let it go easily, but take a big gamble; when you are sure, don't be afraid of wolves and tigers, but jump on it bravely.
The basis can be judged with the help of historical market conditions, such as which historical range the current market valuation is in, and which historical range the individual stock valuation is in.
Specific applications in bull and bear markets
1. Bull market position management: after many years, the general market and most individual stocks have once again effectively stood on the first half line and annual line. In addition, the macro and policy aspects have a bull market foundation, and the bull market will gradually deduce and rise in an all-round way , The money-making effect is constantly the main market feature. It is the best operation to follow the trend and not move.
a, short-term investors: can operate with full positions, have a certain level of technical analysis and short-term skills, and can be the leader of hot spots in the market at that time, but try to pinch trends or small bands after opening positions, not ultra-short-term.
b, middle-line investors: about 80% of the positions, about 50% of the positions were established in the early stage of the bull market, and they continued to increase their positions during the upward trend. Selected companies with both industry and conceptual highlights to hold for the mid-term trend Mainly, when the market sends out a more obvious signal of phased adjustment in the middle of the bull market, the position can be appropriately reduced.
c, long-term investors: more than 80% of the positions, most of the positions are established at the end of the bear market and the early stage of the bull market. Choose 3 or so individual stocks to hold mainly, and wait for the market and some index stocks to signal a general trend reversal or the market is seriously overvalued, and gradually withdraw positions in batches.
2. Position management in volatile markets: It is relatively difficult to operate in a volatile market. Most of the market and individual stocks take the elevator back and forth, and individual stocks that can stand out and continue to rise are rare.
a. Short-term investors: It is recommended to take a position of less than 60%, and you can repeatedly operate more active concept stocks, but if the market breaks the consolidation pattern and breaks down, you need to choose to exit.
b, mid-line investors: 3-50% of the position, choose stocks that are quite interesting in the industry and company, the performance of such stocks in the volatile market is often impressive.
c. Long-term investors: In the volatile market on the way down, wait and see. There is still great uncertainty in the general direction of the market, so it is not an ideal opportunity to open a position. If the market was in a historically low valuation area at that time, you can start to select severely undervalued targets to try to deploy.
3. Bear market position management: Under the background of bear market characteristics, the market systemic risk is obviously released, and most individual stocks are dominated by continuous decline. Going with the trend, cash is king is the best coping strategy.
a, short-term investors: most of the time short positions, predicting that the market will be seriously oversold and will be oversold again, and when there is a restorative technical rebound, short-term heavy positions can be set against the background of setting strict stop losses. Generally, within 5 days, regardless of profit or loss Choose to sell. The key to the operation is to have a good grasp of the rhythm of the market trend, have certain timing and stock selection capabilities, reduce the frequency of transactions, and increase the winning rate of transactions. In the case of a bear market, profits can also be realized.
b, middle-line investors: defense first, wait patiently, short positions are advisable.
c. Long-term investors: wait, improve internal strength, and study individual stocks. In the middle and late stages of a bear market, you can start to gradually build positions on stocks that are optimistic about the long-term. Issue a reverse signal to continue increasing the configuration.
Summary of the essence of position management
1. Good fund management and position control are important magic weapons for long-term investment in the stock market to achieve stable profits. Sometimes they are even the most important factors. Investors must pay attention to them.
2. According to each person's mentality, investment style and operating characteristics, establish a position management system that suits you and constantly improves it.
3. The market is changing rapidly. It is necessary to choose a corresponding position management strategy according to different market characteristics (bull market, bear market, shock market), and the same strategy cannot be applied at any time.
4, from the avenue to simplicity, follow the trend. When managing positions, follow the market and your own inner profit and loss expectations. You should not magnify your greed and panic and disrupt the originally set position management principles due to large market fluctuations.
5. Real knowledge comes from practice. Investors can use part of their funds to keep trying to find the most suitable position management strategy for them.
Position control is an art, not an exact science. It is an effective means to ensure the safety of funds, effectively avoid risks, and make long-term stable profits. Having the awareness and rules of position control is one of the signs of a stock market trader's psychological and technical maturity , position control is based on the unpredictable characteristics of the market and individual stocks in the short term, respect for the market, and guarantee the safety of funds.
For bullish stocks, when the fundamentals are stable, you can adopt a strategy of light positions at high positions and heavy positions at low positions. In addition to fixing positions based on stock prices, there is another equally crucial basis that is the point of the market. "Don't sell when there is no rise, sell when there is a small rise, sell when there is a big rise; don't buy when there is no fall, buy when there is a small fall, buy when there is a big drop, and buy when there is a big drop". Investment pays attention to overall planning and consideration. Neglecting any aspect may cause mistakes in decision-making. After all, it is still a matter of risk control. They control the position properly.
Reasonable control of positions is one of the important means for investors to avoid risks, such as position ratio, position structure, weak market position allocation skills, strong market position position position skills.
source: web
