I often feel that watching others buy funds in stocks is a stable income, but when I come here, it will go up as soon as it is sold, and it will go down as soon as it is bought. In fact, these are often illusions. Everyone is in the same capital market, feeling the same market ups and downs. There will be such an idea, mainly because of the mentality.

There are also mental problems, which are nothing more than three main reasons:

1) buy at a high point, or buy at a high point in stages.

2) There is no clear understanding and logic of the buying target, and there is no confidence to insist on holding it when floating losses.

3) The position is too high, and the position is improperly controlled, and the floating loss is beyond your tolerance.

Then, for the majority of non-professional investors who can't choose the right time, what methods can be used to avoid choosing stocks (basic elections) without choosing the right time?

Timing and stock selection are the basis of securities investment and cannot be completely avoided. But through certain means, the influence of timing and stock selection factors can be weakened to some extent.

0 1 grid transaction mode

Today, we introduce a trading method to weaken these two factors through position control-grid trading method. This method can achieve the purpose of weakening timing, weakening the choice of investment targets and controlling positions in one fell swoop.

Give an example to illustrate the grid trading method: buy an index fund at an initial point, and sell the position of 10% for every 5% increase in the index near the initial point, and continue to sell if it continues to rise; Still near the initial point, every 5% drop in the index will buy the position of 10%.

The core principle of grid trading method is that when the price (stock price, index point, fund net value, etc. ) If it rises, it will continue to sell cash, and if the price falls, it will continue to buy and open positions at a low level. Simply put, it is four words: high throwing and low sucking. Is it tempting to listen?

Based on the principle of grid trading method, grid trading method mainly needs to meet two points when selecting investment targets:

1) is highly volatile. Only high volatility can produce a considerable price difference.

2) Low transaction cost. Grid trading method is a short-term operation method, which will generate transactions more frequently, so choose varieties with lower transaction costs, otherwise the income will be eaten up by the handling fee.

Establishment of 02 model

There are three main parameters that determine the strategic effect of grid trading method:

1, starting price

2. Grid density

3. The amount of transaction funds corresponding to each grid.

Corresponding to these three main parameters, we use the simplest equal grid processing method to explain the steps of model establishment.

The first step is to judge that the market is not at the top. Although it is impossible to predict the stock price in the short term, it is relatively easy to judge whether it is at the top. Don't start building positions at the top of the market;

The second step is to judge the highest and lowest points according to the previous trend, divide them equally and draw a grid;

The third step, after drawing the grid, divide the funds you use for the grid trading strategy by the number of grids to get the amount of trading funds every time the price touches the grid line. Then follow the strategy and execute it without thinking.

03 matters needing attention

When doing grid trading, we should also pay attention to several obvious defects of this method and make sure that we can accept re-participation.

1, funds are idle. In the process of power grid transaction, it is inevitable that funds will be idle. This situation can be optimized by buying money funds, but it cannot be avoided;

2. The bull market is not performing well. One of the core of the strategy is that the stock price keeps rising, so when the bull market comes, there will be a phenomenon of selling or not buying, and short positions will be held in the early or middle of the bull market, thus missing the bull market;

3. You need to have some basic market knowledge and sensitivity. The selection of investment targets, the setting of starting price, the highest and lowest points, the grid density and the setting of the amount of funds corresponding to each grid will all affect the effect of the strategy;

If the market continues to fall, it may fall below the lowest price and need to endure losses for a period of time. Therefore, the most suitable market environment for grid trading method is low-level shock market;

5, need to stare at the disk. For investors who don't have time to watch the market, they may miss the trading time that triggers the transaction, thus affecting the effect of the strategy.

The essence of grid trading method is a short-term trading method to capture market fluctuations, rather than a guide to long-term investment. I suggest that you can participate with a small amount of funds, and the amount of funds should not be too high in your total funds.