There are many types of increasing positions:

Sixth: Regarding increasing positions, I want to say that you must consider your own risk tolerance. If your heart is not strong enough, then don’t easily try the strategy of buying more when prices drop. After all, the stock market is not a charity; it will not compensate you for your losses. On the contrary, it will test your patience and determination with repeated declines.

Seventh: When increasing positions, consider the overall trend of the market. If the market is in a bear phase, then do not easily increase your position, as the decline at this time is likely to be long-term. Conversely, if the market is in a bull phase, then it is appropriate to increase your position to enjoy the gains from the rise. Of course, this requires a certain ability to judge the market trend.

Eighth: When increasing positions, pay attention to the fundamentals of individual stocks. If the performance of a stock continues to decline, then even if the stock price drops, do not easily increase your position. Because such stocks may have already lost their upward momentum, increasing your position will only make you fall deeper. In contrast, if the performance of a stock is steadily increasing, then consider increasing your position when the stock price drops.

Ninth: When increasing positions, be sure to set a stop-loss point. The stop-loss point is like a defense line that can prevent you from falling deeper into losses. Once the stock price falls below the stop-loss point, you must decisively sell to avoid greater losses. Of course, the setting of the stop-loss point also needs to be adjusted according to the actual situation and cannot be generalized.

Tenth: When increasing positions, you need to maintain a calm mindset. The stock market is like the sea; sometimes it is as calm as water, and sometimes it is turbulent. In the face of market fluctuations, we cannot be too nervous or excited; otherwise, we are likely to make wrong decisions. Only by maintaining a calm mindset can we remain invincible in the stock market.

Increasing positions is an art in stock investment; it requires us to make decisions based on market trends, the fundamentals of individual stocks, and our own risk tolerance. Only by mastering the techniques and strategies of increasing positions can we move steadily in the stock market and achieve wealth appreciation.

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