First, buy a fixed position at a certain price. When the price rises to a certain level, buy with less funds than the first position. If the stock price continues to rise later, buy with a smaller position than the previous one, and so on, gradually reducing the amount of additional funds.

The pyramid position increase method is suitable for stocks in bull markets or on an upward trend, and is a strategy to chase after gains. Not suitable for the end of a bull market.

The use of pyramid incremental method can ensure that there is always a certain space between the holding cost and market value, and in the event of a pullback, timely take profits and exit to maximize profits. For example, if a market reversal is found after the third position increase, all orders from the second and third positions can be liquidated at the middle price position between the second and third positions. At least these two orders will not lose money, and the first opening and first adding orders can be temporarily retained to continue observing the development of the market and decide on subsequent operational strategies.

The most important point of using the pyramid buying method is to consider adding positions only when there is profit. This can minimize the risk of being a stock taker when the market and position direction are opposite.

Using the pyramid method to increase positions often involves identifying and seizing deterministic opportunities, and continuing to increase positions as profits and trends gradually form.

Typical fund management models include 3+2+1+1, 4+3+2, etc.

2. Inverted Pyramid Boosting Method

The first time to test buying with a smaller position, if the market rises, the next time to buy more chips than the first time, and so on, increasing the amount of funds gradually.

The inverted pyramid increasing method is suitable for gradually approaching the bottom of an index or stock or at the end of a bear market.

The inverted pyramid method of increasing positions has the meaning of testing positions. When opening the first position, I was not very optimistic about the market and had a relatively small position. However, the market unexpectedly developed strongly and gradually increased my position with profits.

Typical incremental models include 1+3+5, 2+3+4, etc.

3. Olive shaped warehouse expansion method

The stock price is about to rise, so buy with a small amount of funds first. Once you make a profit, instead of closing the position, buy in large quantities with several times the amount of funds from the first transaction; If the price continues to rise, it is possible to invest all the remaining funds into it, with the additional funds being lighter at both ends and heavier in the middle. Like the shape of a rugby ball

The olive shaped incremental method is relatively more robust. Suitable for most retail investors. This method is commonly used in actual combat, especially when ambushing MACD to prevent death. When a golden cross appears 60 minutes in advance, small positions are bought. When it spreads to the daily golden cross and the upward signal is established, the position continues to increase.

Typical fund management models include 2+6+2, 2+5+2, etc.

4. Divide equally and add warehouse method

Before trading, the invested funds are evenly divided into several equal parts. When the market rises step by step as expected, the funds are gradually increased by the same amount each time.

The equal distribution method is suitable for any market situation, and the key point is to divide funds equally according to the strength of the market.

Typical warehousing models include 3+3+3, 2+2+2+2, etc.

5. Probabilistic trading method

This method establishes the standard of profitability on the basis of success rate. There is no systematic fund management method of adding or subtracting positions in batches on a certain stock, resulting in either stop loss or take profit, both completing one round of trading in and out at once.

For example, if you are very bullish on a certain stock, you can buy a fixed position in the stock. If you reach the stop loss level, you can clear your position and leave the market. If you reach the target level, you can take profits. This applies to diversified participation in multiple stocks.

This method of increasing positions is relatively rigid and does not allocate positions flexibly based on market conditions. If the market is better, it can be profitable. But if the market is a little worse, there won't be much profit. In practice, we need to adjust our positions to reasonably reduce risks and steadily obtain profits from the stock market.

6. The pursuit method, also known as the Martingale system

It was originally used in casinos as a roulette wheel, and its basic principle is: if you lose money, you need to double your bet, and if you win money, you need to restore your bet to its original amount. This will ultimately result in you gaining profits. This investment method is suitable for comparison in large upward and downward channels.

7. Anti Madinger Law

Starting from a one unit ratio, double the position after each win, but return to a one unit ratio position after each loss. The advantage of this strategy is that it has lower risk and the increased position is based on winning money, which can keep the account funds safe. The disadvantage of this method is that the maximum position will inevitably result in losses! This investment method is relatively conservative and can be used at both the top and bottom.

8. Winning money plus warehouse method

You start with a few proportional units, reduce your position by one unit after each stop loss, and increase your position by one unit after each win. Gradual increase in holdings!

Summary and Suggestions:

From the essence of market volatility analysis, in the process of continuous decline, it is not wise to replenish positions during the decline because there is no way to predict where the stock price will fall. To succeed, never replenish your position during a decline, only strictly follow the stop loss setting for the initial stop loss. The basic principle of fund management is not to make up for losses or increase positions if one does not win. Furthermore, during the upward trend, stock prices cannot continue to rise indefinitely. As the increase in price increases, the risk also increases, and the possibility of a pullback increases. Therefore, the increase in position gradually decreases with the increase in price, which is the most reasonable method.

We can adjust our positions according to our personal operating style, or flexibly adjust our positions based on the market conditions. It can be certain that if the position is well controlled, not only can it be operated smoothly and skillfully, but the mood will also become pleasant.

Why are there always some people who can handle the ups and downs of the market without feeling happy or sad? Being good at controlling positions is one of the secrets.