How to operate on reducing and increasing positions in trading?
1. Suppose you are holding a long position of 20%, and the market is experiencing a decline, but you are quite sure about the upward trend. How should you manage your position?
Answer: Suppose it falls below 3300, you can reduce your position by 10%, and wait for key levels below to add another 10%. This will actually lower your average position price. If it stabilizes above 3300 again, you can add another 10% to your position. Although there may be some price difference, you are protecting against a downturn. If it does drop, then you will recover the average price; if it doesn't drop, then it's just a few points of error, which is negligible.
2. If you increase your position while you are in profit, does it have a significant impact on the opening average price?
Answer: It does not have a large impact.
If you add to your position when it stabilizes at 3350, you only need to set a stop loss of 20 points for the added portion. If you increase your position by 1000U, as long as you stop loss this 1000U, it actually does not affect the opening average price because the stop loss for closing the position and the added portion is already in profit. Although the position shows an increase in average price, the profitable portion can almost offset the increase in average price. If the average moves up by 50 points and you stop loss by 20 points, it effectively has only moved up by about 20 points. This is because the actual opening and closing of trading positions are calculated based on the latest time and will not be reflected in the actual data.