generally speaking, for retail investors, "covering positions" is a self-rescue method after stocks are put at a high level, and it is a proactive behavior to reduce the cost of individual stocks. Even in the bull market, there are countless cases of stock quilt cover. "Making up positions" seems simple, but in fact, the inner knowledge is quite profound. Properly operated, it can not only liberate the stock, but also have profit opportunities; Improper operation will not only make it difficult to get out, but also make it possible to get deeper and deeper, and finally fall into an embarrassing situation that is difficult to extricate itself. Among all the investment strategies, covering positions is the most controversial, because covering positions is a passive investment strategy. However, in the stock market, there is no one-size-fits-all tonic pill, and there is no winning investment trick. Any method is only the most effective method for some market environments. When a market environment is changed, the original effective method will become out of date. For example, when the stock market is adjusted to a relatively low level, it is no longer necessary to think about how to stop the loss. Because there is little room for the stock price to fall in the bottom area, even if the stop loss is successful, it will not recover much loss. Moreover, stopping losses in the bottom area of the stock market is tantamount to quenching thirst by drinking poison. It is an act of being scared by the plunge at the end of the bear market and a panic investment behavior. There is only one result to wait for: irreparable losses. Conditions for covering positions: 1. If the overall market trend is upward and the adjustment is temporary, you can actively cover positions; 2. Does the stock in hand have investment value or speculative value? Has the stock price seriously deviated from its value? If yes, you can take the initiative to make up the position, if there is no participation value, it is not appropriate to make up the position; 3. Is the current price of stocks held by investors far lower than their original purchase price? If compared with your own purchase price, the decline has been deep now, you can make up the position. If, after buying, the current set is not deep, then stop loss or stock exchange should be considered; 4. How many profitable stocks do investors need to cover? If there are more profitable stocks, it is not appropriate to make up the position, and if the mobile cost distribution index shows that there are fewer profitable stocks, it can make up the position; 5. What is the purpose of covering positions? If you intend to hold it for a long time and want to open a position on dips, this type of cover position should be cautious according to the current market environment. If it is only for short-term consideration, it is necessary to control the proportion of funds invested by making use of the original locked chips in hand to carry out ultra-short-term "T+" or rolling short-term operations to make up short-term quick gains; 6. When your stock is locked up to 5-1%, don't rush to make up the position. Think, analyze and judge whether the stock has any hope, not just because you are locked up, but because you want to buy more to reduce the cost! If there is no hope, we must cut the position and go out, so as not to get deeper and deeper.
the operation strategy of covering positions covering positions can reduce the cost of investors' positions. Pay attention to the following points when applying the strategy of covering positions:
First, the purpose of covering positions. First of all, it is necessary to distinguish whether the purpose of covering positions is to cover positions strategically in the long-term or for short-term or ultra-short-term "T+" operation. Because the scope of application, selection strategies and implementation methods of the two are different. Therefore, it is necessary to choose different application strategies according to different positions.
second, the timing of covering positions. For long-term covering positions for unwinding purposes, we must pay attention to: we will resolutely not cover positions when the market has not stabilized. In particular, when the market is in the downtrend channel or the relay rebounds, it can't make up the position, because the further decline of the stock index will often drag down the vast majority of stocks, with the exception of a few stocks that are strong against the market. The best time to strategically cover positions is when the market is at a relatively low level or just reversed upward. At this time, the potential for rising is huge, the space for falling is the smallest, and it is safer to make up the position. For short-term operations, as long as the market is not accelerating, and individual stocks reach the bottom of the stage, they can actively participate.
third, stock selection for covering positions. The key point of stock selection is: you don't have to choose your original quilt to cover your position. Because the purpose of covering positions is to make up for the loss of quilt stocks with the profits of stocks that cover positions later, no matter what varieties are selected, the goal should be to maximize profits, so it is unnecessary to limit the stocks that you must choose to be quilt.
fourth, the degree of covering positions and overweight. For the loose covering, you can buy chips far more than the number of shares in your hand, and achieve the goal of smooth unwinding by greatly reducing the cost of locking. For short-term trading, the traded chips should be equal to or less than the original holdings. In this way, the risk can be effectively controlled, and the "T+" trading can be made with the original locked chips.
five, the number of positions. The most successful strategic covering position is to strive for one success, and never try to cover positions in sections or step by step. First of all, ordinary investors have limited funds and can't afford to share many times. Secondly, covering the position is to make up for the previous wrong buying behavior, and it should not be the second wrong transaction in itself. The so-called step-by-step replenishment is to defend the careless buying behavior. Make up positions many times, and the more you buy, the more sets you will get, and you will be trapped in a deep situation.