First, no matter how big the grasp and how high the certainty is, they will not invest all the money in a single variety. From the perspective of avoiding market unsystematic risks, the limit position of a single stock generally does not exceed 20%. For investors with slightly larger funds (such as more than 10 million yuan), the position limit for a single stock should be limited to 10%. Many small investors like to go in and out of a stock with a full position , which may bring huge profits, but it may also suffer great losses as a result. Small retail investors enter and exit the stock market . In order to pursue short-term excess profits, they can fill their warehouses with a single variety, but the premise is that they must do their homework and make a risk prevention plan.
Second, when the market is unclear, low positions intervene. Once the market trend is clear, the positions will either be cleared or filled. Investment experts have a keen sense of the market, but when the upward trend of the market is consistent with their own judgment, they dare to boldly attack the full position. When the downward trend of the market is consistent with their own judgment, they will liquidate their positions in time. When the market trend is inconsistent with their own judgment, they will use less positions to enter and exit, looking for market feeling. Doing so can make profits fly, or lock in losses, so as to achieve the goal of making a lot of money in a bull market and losing less money in a bear market .
Third, it is easy not to cover the position, but to close the position in time. However, when the market trend develops in the direction you expect, you dare to gradually increase your positions. In 2010, an investment expert bought a 10% position in a stock when it was 13 yuan, increased it to 20% when it was 15 yuan, and increased its position to 40% when it reached 20 yuan. Finally, when the stock price reaches more than 30 yuan, it gradually withdraws, thereby maximizing profits.
Fourth, investment masters often adjust their positions according to market changes after heavy positions. For example, after a single stock reaches 40% of the position, 10% of the position is used for short-term entry and exit, one is to lock in profits, and the other is to reduce the position to prevent the expansion of risks. This is exactly the opposite of what some retail investors do: after buying a certain stock, many retail investors often like to cover their positions when the stock price falls. Time to buy another 20 lots, and then sell the original 20 lots on the same day to make the difference. It seems that there is no problem with this strategy. However, most of the stocks that retail investors buy to cover their positions often cannot be sold on the same day, and as a result, they are trapped again. At this point, stronger technical support is needed to complete the operation, rather than simply thinking about buying low and selling high.