Scientific stock investment methods and scientific portfolio building and exit behavior are inseparable. Controlling positions well can often reduce or even avoid the sharp drops in the stock market. So, how to control positions to avoid a stock market crash?

Scientific warehousing and exit behavior can largely avoid numerous risks and minimize the risk coefficient of capital investment. Generally speaking, warehousing behavior can be divided into three main capital investment modes: simple investment mode, composite investment mode, and portfolio investment mode. The specific usage methods of the three modes are as follows:

1、 Simple investment mode

The simple investment mode is generally referred to as the "two two allocation", which means that the investment of funds is always a half position operation. It is necessary to maintain necessary and maximum vigilance for investment in any market situation, and always adhere to the half position behavior. For venture capital in the stock market, the first thing to strive for is to be invincible, and always insist on the active right to use funds. In the event of a loss in investment, if there is a need to replenish the position, the investment behavior of the retained funds is also the "two two allocation", rather than a one-time replenishment. The "two two allocation" is the basic mode of the simple investment method, which is simple but has certain safety and reliability. The disadvantage of the binary system is that investment behavior lacks enthusiasm to a certain extent.

2、 Composite investment model

The investment method of the composite investment model is relatively complex, strictly speaking, it has multiple levels of division, but there are mainly three point and six point systems. 1. The three-point system mainly divides funds into three equal parts, and the act of building a warehouse is always completed in three stages, gradually intervening. For large funds, the act of building a warehouse is a determined area, so the act of building a warehouse is a periodic behavior. The three-point system usually retains one-third of the risk capital when building a warehouse. Compared to the two-point system, the three-point system is more proactive in building a warehouse. When two-thirds of the funds invested in the three-point system have been built and a certain profit has been obtained, the remaining one-third of the funds retained can have a more positive investment attitude. The investment model of the three-point system is not complicated, and compared to the two-point system, it is more scientific. In terms of investment attitude, it is more proactive than the two-point system. However, this positive behavior of building positions must be based on the premise that the investment subject's funds obtain certain profits. The disadvantage of the three-point system is that its risk control ability is lower than that of the two-point system compared to the two-point system.

2. The six point system is a combination of the basic characteristics of the two-point and three-point systems, actively leveraging the advantages of both models. The specific fund allocation for the six point system's warehouse building behavior is as follows: the six point system divides the overall investment funds into six equal parts, and the six equal parts of funds are divided into three tiers. A、 The first stage is 1 unit, which accounts for 1/6 of the total funds, B、 The second tier accounts for 1/3 of the total funds for two units, C、 The first stage consists of 3 units, which account for half of the total funds. The six point system for building positions is relatively flexible, and it is an effective combination of funds in the three tiers of A, B, and C. Funds can be used in six combinations according to different market conditions: (A, B, C) (A, C, B) (B, A, C) (B, C, A) (C, A, B) (C, B, A). However, regardless of which combination is used, the final group is risk capital. At the same time, regardless of which tier is used, the intervention of funds must be progressive in each unit. While using funds from the A, B, and C tiers, it is also possible to use a two-tier system for B-tier funds and a three-tier system for C-tier funds, which is more comprehensive. The six point system is a relatively flexible, safe, and reliable investment model that combines the advantages of both methods in investment behavior. However, the disadvantage is that the procedures during use are somewhat complex.

3、 Portfolio investment model

The portfolio investment model is not entirely the same as the perspective discussed earlier. Strictly speaking, it is not divided by the amount of funds, but by the cyclical behavior of investment. It is mainly divided into three investment models: long, medium, and short cycles to determine the division of funds. Generally speaking, the overall funds are divided into four equal parts, namely long, medium, and short funds, as well as risk control funds.

From the above, we can see that the division of different funds and the mode of building positions should be from multiple perspectives. Therefore, the act of building positions is based on the accurate judgment of the executor. However, scientific building behavior can better control the decision-making risks of decision-makers. Therefore, the decision-making of decision-makers is inseparable from scientific building behavior. The act of building a warehouse is not a single model, and each model has its own advantages and disadvantages. However, compared to others, the six point method is relatively scientific, but the more scientific the method, the more complex it may be. Therefore, in complex situations, we use the six point method to divide funds into stocks, and use the control principles of binary and ternary methods to analyze fund investment, which simplifies complexity and simplifies complexity.

After buying stocks, one faces the problem of exiting the market. Selling stocks also requires rigorous and scientific methods. Only by applying scientific methods well can scientific investment behavior in stocks be a more systematic, complete, and rational investment behavior. Below, we will elaborate on the stock market behavior in various situations.

1. If the expected profit is achieved within the specified time, the warehouse will be resolutely cleared. If the profit is completed ahead of schedule within an unlimited time, 2/3 of the stock will be released, or the total capital of the released stock will be the invested principal.

2. If the expected profit is not achieved within the specified time, the warehouse will be resolutely cleared. In special circumstances, if the market is judged by the decision-making level to be necessary to continue holding, then 1/2 of the position must be exited first to prevent adverse and passive situations that may arise from misjudgment. The remaining 1/2 position must be exited within the prescribed range.

3. If a loss occurs within a limited time, but the loss situation does not meet the expected closing line requirement, 2/3 of the position will be taken out to prevent the overall fund loss from reaching the closing requirement, and the funds taken out will be used to appropriately replenish the low-priced position.

4. If the expected profit is exceeded within the specified time, all will be released. If the expected profit is completed ahead of schedule within an unlimited time, the total amount of funds released from the stock is the sum of the principal and the expected profit. Others can continue to be held.

5. If there is no profit or loss within the expected time, it will be eliminated in one go.

Finally, we would like to remind investors that stock trading carries risks. While entering the market with caution, please also maintain a good investment mentality.