One is the overall market: replenish when stable, do not replenish when unstable

If the entire market is in the initial decline stage after reaching its peak, and the market has neither stopped falling nor stabilized, replenishing positions will only increase the "hedging" of chips and accelerate the "shrinkage rate" of market value.

The second is the stock nature: familiar supplements, unfamiliar supplements

If you are not familiar with the fundamentals and characteristics of the stocks participating in the replenishment, it will increase the blindness of the replenishment operation, and you will have countless ideas and lack confidence. Such a restocking would certainly not yield ideal results.

Thirdly, performance: good compensation, no compensation for bad performance

Generally speaking, investors who are preparing to replenish their positions should first choose companies with good performance to replenish their positions. Companies with performance problems should not be allowed to increase their positions in principle. Although it appears from the final outcome that some problematic companies may experience a significant increase in stock prices, it is still not advisable to participate in the replenishment of such problematic companies from a conservative perspective.

The fourth is the trend: replenish when the market starts to rise, and do not replenish when the market breaks

From a technical perspective, replenishment emphasizes the principle of prudence. Therefore, for companies that have been in an upward trend for a long time and have a stable secondary market trend, when their stock prices suddenly turn or even show signs of breaking through, they should give up replenishment. On the contrary, for companies that have been declining for a long time and performing poorly, they can follow up promptly when there are signs of an upward trend.

Number five is rise and fall: compensate for sharp drops and not compensate for sharp rises

When it comes to replenishing positions, it is generally advisable to buy when the related variety experiences a significant drop or even a sudden drop. It should be noted that some companies with huge gains and high profits [0.38%] often take advantage of market trends to initiate shipments. Investors who cannot identify clearly and do not replenish their positions improperly may also become unfortunate high-level buyers when these stocks fall sharply. So, there is a prerequisite for compensating during a major drop and not compensating during a major rise, which is that the historical increase cannot be too large.

Six is profit and loss: make up for positive differences and not make up for differences

For previously sold chips, it is important to adhere to this principle when replenishing positions. When the sold chips experience a decline and there is a positive profit margin, it is necessary to replenish the position. On the contrary, when the sold chips show an increase and there is no opportunity for a positive difference to be recovered, it is not advisable to replenish the position. If you really want to replenish your position, you also need to be patient and wait for a period of time, and then replenish your position after the stock price falls back.

Seventh is rhythm: replenish during callback, do not replenish during reverse draw

On the basis of complying with the above replenishment principles, attention should also be paid to the rhythm of entry and exit during actual replenishment operations. Especially, it is important to buy stocks at low prices during the pullback or decline process, rather than rushing to raise funds during the rebound or rise.

Number eight is the position: light positions can be replenished, heavy positions cannot be replenished

When replenishing positions, it is also important to pay attention to the proportion of a single product in the total market value of the account, and follow the general requirement of "controlling positions and making good combinations" to replenish positions. When the position of a single variety has not reached the upper limit, replenishment operations can be carried out; otherwise, replenishment operations should not be carried out. Even if one has a special preference for a certain variety, this principle must still be adhered to.