The knack of replenishment

It is not a good way to solve the problem, but it is the most appropriate way in some specific circumstances. The timing of replenishment should follow the following principles:

(1) At the beginning of a bear market, you can't cover your position: people who are speculating in stocks understand this, but some investors can't distinguish between bull and bear turning points. What should we do? There is a very simple way: stock prices do not fall deep, determined not to cover positions. If the current price of the stock is 5% lower than the buying price, there is no need to cover the position, because any intraday shock may be relieved. If the current price is 20% - 30% lower than the buying price, we can consider covering the position, and the space for further decline in the future is relatively limited.

(2) Market instability does not cover: the market is in the downward channel or relay rebound can not cover. The best time to cover a position is when the index is at a relatively low position or has just reversed upward. At this time, the potential of rising is huge, the possibility of falling is the least, and it is safer to cover the position.

(3) When the market is in the downward channel, it is determined not to make up the position: the best time to make up the position strategically is at the end of the bear market, when the market is at a relatively low level, or when the market just reverses upward after a successful bottom. At this time, the potential of rising is huge, the space of falling is the smallest, and it is safer to cover the position.

(4) Weak stocks do not make up: to make up for the position of strong stocks, can not make up for the weak stocks.

(5) When the market is in decline, it can't make up the position when it rebounds: the so-called "rebound is not the bottom, but the bottom does not rebound." The rebound itself shows that there are still bulls in the market who are struggling against the situation. It indirectly shows that there is still the possibility of further decline in the future market. In this case, it is not appropriate to use strategic position building.

(6) Grasp the opportunity of replenishment, and strive for a success: never segment replenishment, step by step replenishment. Many times to fill positions, the more you buy, the more you set up, the result will make you unable to extricate yourself from the situation.