1. Bull markets are not common. If you encounter them, traders will be lucky. You must understand the various ways to play under the bull and bear transformation. The bull market is important and stock selection in the bear market.
How can stock market participants follow the trend in the bull market and pursue the victory, so that profits can be further expanded. This has to mention the strategies of adding and reducing positions in capital management. Is it a technical analysis to figure out when to increase positions from the chart? There is no basis for this from the market. If you can really see that it will increase later, then you can directly add funds in the account at one time, and then raise funds and continue to increase positions. Once the financing amount is used up, borrow money to increase positions, which will increase positions by dozens or hundreds of times at a time. Then you will realize financial freedom.
2. So don’t want to use technical methods to find the best position increase point. In fact, position increase is a trade-off based on consideration of future uncertainty and weighing gains and losses. Under what circumstances is it that only increases your position? Of course, it is based on the premise of floating profits. The judgment trend will be consistent with the direction of buying, that is, guessing the stock price and not retracement, which is a relatively smooth market trend. If the increase is wrong, the previous profit will be denied.
3. There is a big market trend. This model is suitable for using the pyramid increase position method, especially in a bull market. In the case of overall market fluctuations, it is not suitable for using the pyramid increase position method. If you add it a few times, it was wrong once, and the account fluctuations are too large, which is meaningless. There is no profit when it goes up and down. In a bear market, you need to use a strategy of reducing positions. Adding positions is basically to find unpleasantness for yourself.
4. Traders should learn how to use the pyramid to increase positions and expand their returns in a bull market. As mentioned above, the advantages of this method are: , the market is in the rising stage, and the stock bought is also at a relatively low level. If you have sufficient funds and do a band trend, you will increase your position at 5% of the floating profit once. If you are doing a long-term trend, the percentage of the floating profit should be enlarged and the percentage should be adjusted according to the situation.
5. That is to say, when your transaction already has 5% profit (floating profit), you can increase your position. In addition, you must set a stop loss order for your increase position, and set it to about 2% of the stop loss order so that you will not swallow up your floating profit. When the trend continues to go down, you close your position and you can also get out of here. With a stop loss order, no matter whether you are long or shorting and , you will not make any major mistakes or losses. If you are chasing the rise, which is often referred to as the right-side trading, and the stock price is already at a high level, traders should raise the floating profit point, that is, increase the position every 10% floating profit. When your trade already has 10% profit (floating profit), you can increase your position.
6. The pyramid increase in position is the most position for the first time, and then each increase in position decreases by a certain amount. For example, if you buy 1,000 shares in the bottom position, and every 5% increase in the stock price, you buy 1,000 shares. When holding position cumulatively reaches 2,000 shares, the amount of each increase can be reduced. After that, buy 500 shares for every 5% increase, and buy 300 shares for another 5% increase. Taking the foreign market as an example, when shorting, the idea is similar, but the direction is opposite, and the amount of short selling and increasing positions should be reduced, because the risk of short selling is greater than longing.
7. You can expand your profits in the bull market through the pyramid increase method. As long as you can capture a big trend, you can obtain generous returns by increasing your positions and do not have to bear too much risk. Unless the first transaction proves that your judgment is correct, in other words, do not increase your positions on floating losses. When the position you hold is losing money, do not try to flatten your losses by increasing your positions. This is the most likely mistake for trading novices and the most harmful mistake. If you make a wrong trend judgment, you are wrong. To give a realistic business example, there are ten projects carried out at the same time. Through calculation, it is found that one project has suffered losses. At this time, the loss-making project is decisively terminated and resources are allocated to profit. This is the same.
If a trader has billions of funds, will he also use the pyramid increase position method? Billions of billions are not suitable for playing like this. You have to communicate with the company and play together. What does it mean? There is a saying in the business world: "If you have money, everyone will make money together."
Give someone a rose, leaving a fragrance on your hands.
Author: Huahui Starry Sky
