1、 Clarify one's own positioning.
The trend of any stock is only a probabilistic judgment, and heavy or single positions cannot control small probability events at all, because under the T1 operating system, you cannot make corrections to incorrect judgments in a timely manner. When you buy heavy or single positions, you have to bear at least the remaining trading time of the day and a series of risks during the opening period of the next day. This is also the reason why most ultra short experts choose to trade in the last 15 minutes of the trading day. This proactive action to reduce the risk on the timeline is also a risk control measure.
For many people, splitting and light trading may significantly reduce their returns on a particular ticket. At this point, they may hate someone like me who keeps talking and asking everyone to buy less on a single ticket. However, what people overlook at this point is that splitting can also greatly reduce investment risks. This is also a big question that Xiaosan faces: which is more important, earning more or losing less? I think investment is a game of time compounding. Only by living can one have the capital to talk about time, and only with capital can one have the qualification to talk about profits. I also don't like a quick and volatile return curve.
So, to do a good job in warehouse control, first you need to clarify your positioning:
If you are a novice in the stock market and want to have a basic understanding and learn about the investment method of stocks. Suggestion: Take the initiative to try and make mistakes with low capital, learn from the market in various aspects such as trend judgment, stock selection, risk control, and precise operations. The establishment of a personal operating system is usually based on constantly correcting mistakes until finding an investment path that suits one's logical thinking and investment mentality. So my only suggestion is to prioritize learning risk management and strive to become a qualified investor.
If you have been familiar with the stock market for a long time, but need to spend a lot of time busy with work in daily life, and do not have much time to monitor the market and operate frequently, I suggest operating one or two high-performance long-term stocks. Before the bullish trend is determined, gradually building a position of 60% is already the highest position level; You can seize the big wave during your spare time. Once the bull trend is confirmed, you can increase your position to 80%, but be sure to pay attention to controlling take profit and stop loss. As for building a position, it is not the kind of one-time buy six achievement completion. You can adopt a pyramid or olive shaped position building model according to the trend of the market.
2、 Distinguish the trend of the overall market.
The impact of the overall market trend on individual stocks is still quite obvious, and only a small number of individual stocks can be independent of the overall market. Therefore, it is important to distinguish the overall market trend. We roughly divide the overall market trend into three situations: strong, volatile, and weak.
1. When the market is strong and clearly in a strong state, the pyramid shaped warehouse building model is more reasonable and can ensure a significant profit. After reaching the expected profit, a 1-2 or 2-3 gradual exit method will be adopted to lock in profits.
2. In volatile market conditions, the olive shaped position building model is usually adopted, where the bottom position is taken first and the position investment is increased after the individual stock breakthrough form is established. This position building model is conducive to avoiding short-term risks. This profit taking model for building positions can be roughly divided into two types. If the market is still in a volatile state after reaching the profit target, a gradual reduction of positions and departure will be adopted. If the market trend improves, a 1-2 or 2-3 exit strategy will also be adopted.
3. In weak market conditions, it is advisable to adopt a wait-and-see approach, maintaining a 20-30% observation position on the middle line, while also maintaining a 10% short-term trading position to maintain market sentiment and wait for the market to warm up. Short term operations are actually just a small requirement, fast in and out, never obsessed with fighting, do not fall too deeply in love with the short term, and if the expected time does not meet expectations or falls to the stop loss level, resolutely leave to preserve strength.
3、 Distinguish between short, medium, and long lines.
Most retail investors do not have the concept of position allocation and prefer to enter the market in one go. The full position time is relatively long, and they are more passive when risks arise. Therefore, I believe it is necessary to plan the position allocation for the short, medium, and long term.
Firstly, most retail investors do not have a large amount of funds, so it is important to plan your position allocation reasonably. It is recommended to allocate 50-60% of your position in the medium to long term, which is the foundation of your profitability. Through in-depth research on individual stocks, you can better grasp the fluctuations of these 1-2 stocks, and be able to eat most of the profits when they rise. When they fall, you can timely reduce your position and minimize drawdown.
Secondly, prepare 20-30% of the band funds, which can be added in a timely manner when the market is good or the stock is strong, or used as a 1-2, 2-3 cash in profit method when the profit expectation is reached. Most of the time, these funds are in a resting stage and can be used as "war food". At the same time, there is still 10-20% of funds left for short-term fund allocation. Actively attack in strong or oversold rebound markets, fast in and out, never be obsessed with battle, bring additional profit opportunities to the account, and maintain one's own market sentiment.
