What do you mean by adding and reducing positions?

Adding positions refers to the act of buying the subject matter on the basis of holding the subject matter, while lightening positions refers to the act of selling part of the subject matter on the basis of holding the subject matter.

Generally, adding positions in the process of falling themes can reduce costs, while adding positions in the process of rising themes will increase costs; Lightening positions is generally carried out in the process of rising themes, and gains are made after rising. Lightening positions can guarantee part of the income first.

Masukura is to buy this blue-chip stock on the basis of the original stock, which is a stock with excellent performance, strong competitiveness, high market share and great popularity.

Lightening positions is the act of selling stocks in the process of rising stock prices. Adding and reducing positions are the behaviors of buying and selling stocks within your purchasing power.

When the market direction is determined, investors can consider adding positions when the trend can be sustained, but they must add positions when the positions are guaranteed. If the position is too shallow, please don't consider it.

Adding positions is usually pyramid method. Take the bulls as an example, and buy some at the bottom, such as 80 lots. When the market reaches a certain position, buy 60 lots, then buy 40 lots when it rises again, and so on. In this way, because the number of low positions is always more than that of high positions, you can always ensure that your position cost is lower than the average market price. When you think the market is going to reverse, you can level it once or twice-be careful to level it as soon as possible.

When speculating in foreign exchange, investors will generally analyze their own foreign exchange market transactions and find that their transactions are systematic. However, if they increase their positions, they will find that they have actually used the second trading system. From the point of view of trading risk, jiacang undoubtedly increases our investment risk, because we have increased our positions through jiacang, and naturally our profits will increase with the increase of positions.

If you choose to add a position when speculating in foreign exchange, it means that there is already a position, which is generally called a trial warehouse receipt here. If the trial warehouse receipt does not conform to the market trend, investors can stop the loss first and then try the warehouse again. If our trial warehouse receipt has been successful, it means that we have made a certain profit. If we add positions at this time, the risk we bear is still our trial warehouse receipt risk. In this sense, add a position.

Usually, the premise of adding positions is that the fluctuation trend of exchange rate has been predicted, and the market will have a strong trend in the later period. Only under this premise, the risk of investors choosing to add positions is the lowest. In fact, to sum up, if there is a loss in the position, the stop loss will reduce your loss; If the position is profitable, you will increase your position and expand your profit. This is the essence of jiacang.