Even users who have not entered the stock market will often hear words such as adding positions, covering positions, and liquidating positions. Simply put, position management in the stock market is risk control. Moreover, when the stock market stops falling after a sharp decline but does not rebound clearly, or in the later stages of the shock, everyone will have the urge to cover or increase their positions. So, what are the techniques for adding positions?
1. In short-term situations. To set a stop loss position, everyone can set a stop loss position according to their actual situation. Then you can use the moving average to increase your position, and sell decisively when it breaks below the 10-day moving average and the 15-day moving average. Rely on the support level or pressure level setting to set a stop loss and add a position. If the stock price hovers at the support level for a long time without falling, and your cost price is much higher than the support level, then you can add a position.
2. In the case of long term. The stop loss set in the long term is a fixed stop loss, which is generally set at a position 25% lower than the purchase price. When stocks fall, investors should increase their positions by a fixed amount, and when the industry is in recession, they should quickly reduce their positions.
3. Adding a position is mainly divided into the above two processing methods. Adding positions in the stock market is a common manipulation method in stocks. When opening a position for the first time, investors only need to invest a small amount of capital, and then choose opportunities to add positions based on market conditions.
The above is an introduction to the techniques for adding positions. I hope the answer will be helpful to you.