Fund allocation:
Understanding fund allocation from the perspective of total funds If your total funds are 100,000 yuan, do you always buy and sell with full positions? If so, you have not yet understood the concept of fund allocation and have not fully utilized the initiative given to us by the market. It is the same if you always enter and exit with the same small order volume. The value of order volume lies in change! I think no matter how confident you are in the market and the market, you should also let the funds enter the market in batches.
Because confidence cannot help you make money. The market may change suddenly at any time, and the first thing to consider should be the risk! If your total funds are 100,000 yuan, and you only use a few thousand yuan to place an order, then I don’t understand what you mean, at least I don’t see any rationality in fund allocation. At least it does not conform to the overall concept of doubling the funds that I have mentioned.
Of course, the risk is small if the order volume is small, but what if the market is right? If a victory does not bring you a positive impact that is obviously beneficial to the overall situation, do you want to leave regrets? Therefore, fund allocation is not a simple question of more or less, but a major issue related to the overall victory or defeat.