Liang Xi's end will be either today or tomorrow. His character has already determined his fate. If he knew how to manage his position, he would not have ended up like this. People who know how to manage their positions are like masters of time management and can handle any market conditions or women with ease.

Position management is the most important skill that determines whether you can survive in the market. No one is a god and everyone makes mistakes. Making mistakes is not scary, but what is scary is that you have no room for maneuver after making mistakes. Today I will talk to you about the key points: why some people keep losing money and never make up for it, while others can never recover after making a mistake once.

"If you are still underwater and can't see the market trend clearly, if you are bullish, it will fall, if you are bearish, it will rise. Follow my homepage and I will share the profit code for free every day."

First, let me introduce to you several common methods of wet.

1. Funnel Position Management Method

The initial entry amount of funds is relatively small and the position is relatively light. If the market falls, positions will be gradually increased in the future to spread the cost and increase the proportion of positions.

In this method, the position control is in a form of 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.

Under this position management method, the more the reverse fluctuation is, the larger the position will be, and the higher the risk will be. When the reverse fluctuation reaches a certain level, it will inevitably lead to full position holding;

At this time, as long as the direction fluctuates a little bit in the opposite direction, it will lead to warehouse B.

 

2. Rectangular Position Management Method

 

The initial amount of funds entering the market accounts for a fixed proportion of the total funds. If the market falls, the position will be gradually increased to reduce the cost;

 

Adding positions follows this fixed ratio, and the shape is like a rectangle, which can be called the rectangular position management method. Common position ratios are 1/3, 1/4, and 1/5.

 

Advantages: Each time you increase your position by a certain percentage, the cost of holding a position will gradually increase, and the risk will be evenly distributed and managed. If the position can be controlled and the market outlook is consistent with your judgment, you will get rich returns.

 

Disadvantages: In the initial stage, the average cost rises quickly, and it is easy to quickly fall into a passive situation. The price cannot exceed the break-even point and is in a trapped situation.

 

Similar to the funnel-shaped method, the more the price changes in the opposite direction, the larger the position will be. When it reaches a certain level, the entire position will be held. However, if the price changes slightly in the opposite direction, it will lead to a margin call.

 

3. Pyramid Position Management Method

The initial amount of funds entering the market is relatively large. If the market moves in the opposite direction in the future, you will no longer increase your position. If the direction is consistent, you will gradually increase your position, and the proportion of increasing positions will become smaller and smaller.

The position control is in the form of a large bottom and a small top, like a pyramid, so it is called the pyramid position management method. Common position ratios are 5:3:2 or 4:3:2:1.

Position control skills in a volatile market:

 

1. When the market is in a period of shock and adjustment, it often breeds strong opportunities in the later period;

 

2. Keep 40% to 60% of your funds available for allocation so that you can wait for opportunities to act;

 

3. Buy quickly when there is a sharp drop and exit when you are ahead. This is a more suitable time to go short-term and enter and exit quickly.

 

The market is currently at the end of a bear market. If you are optimistic about the future market and choose projects you like, it is advisable to add up your project positions to 1/5. Of the remaining 4/50%, you can use 10% to 20% to chase short-term profits.

 

However, the reserve funds cannot be less than 40%, even in a bull market. In a weak market, the reserve funds must be more than 40%.