1. [Funnel Position Management Method]
The initial amount of funds entering the market is relatively small, and the position is relatively light. If the market falls, the position will be gradually increased in the future, thereby diluting the cost and increasing the proportion of position increase. In this method, the position control is small at the bottom and large at the top, which is very similar to a funnel, so it can be called a funnel-shaped position management method. Common position ratios are 2:3:5 or 1:2:3:4.
Advantages: The initial risk is relatively small. As long as there is no margin call, the higher the funnel, the greater the profit.
Disadvantages: This method is based on the premise that the future market trend is consistent with the judgment. If the direction is judged wrong, or the direction of the trend cannot exceed the total cost price, it will be impossible to make a profit.