Position control is generally viewed from the following two perspectives:

Firstly, there are two strategies for allocating funds (stocks): equal distribution and pyramid distribution. The so-called equal distribution method is to divide funds into several equal shares, buy one equal share of stocks, and if the stocks fall to a certain extent after buying, buy the same number of stocks as last time, and so on to dilute costs. If the price rises to a certain level after buying, sell a portion of the stock, and if it rises again, sell another portion until the next opportunity to operate arrives. And pyramid allocation

The law also divides funds into several parts. If a stock falls to a certain extent after buying, then buy more stocks than the last time, and so on. If it rises, sell a part first. If it continues to rise, sell more stocks.  

The common feature of these two methods is that they buy more as they fall and sell more as they rise. The choice of allocation method depends on the investor themselves. If the investor is confident in their judgment of the future market, they should adopt the equal distribution method. The stock price can also adopt the equal distribution method to capture the price difference when it is in a box movement. If investors like to buy at the bottom or are not very confident about the future, the pyramid distribution method is a better choice because it is more robust than the equal distribution method in terms of reducing holding costs and maximizing profit margins. Both of these methods are more suitable for investors who engage in band trading (usually pursuing buying at low levels), but not for radical investors who like to take risks. Radical investors (entering the market during the uptrend) should generally set stricter stop loss levels due to the high risk of the stocks they participate in. The strategy of buying more and more as they fall may lead to a loss of capital.

The second is the strategy of dividing stocks: we always see discussions about whether eggs should be placed in one basket or several baskets, and everyone is right, everyone is right. Here is an old saying: which method to adopt depends on the investor themselves. If you are confident, you should stick to one stock and not relax. If you are not confident, you should buy 2-3 individual stocks (buying too many is inconvenient for management and tracking, and the vast majority of investors do not have a large amount of funds). It is important to avoid buying stocks with repetitive themes or the same sector as much as possible, because stocks with repetitive themes or the same sector have linkage. If one stock does not rise, the others are not much better.

There are generally several strategies for dividing positions, but many new investors will try to buy stocks with a small amount of funds, often forgetting themselves after obtaining some benefits (in fact, most new investors enter the market during good market conditions, so there will be some benefits at the beginning), and then being trapped in full positions is not due to ignorance, but rather due to psychological manipulation. Therefore, you will understand why many stock market experts, including many old investors, have a much higher proportion of dividing positions than new investors. So how to avoid the mistake of impulsive full position operations? The author provides some methods: pre planning. Before buying or selling, you must have a risk control plan for dividing or stopping losses. If you are a newcomer to the stock market, you should first use a small amount of funds to operate, and only after gaining considerable experience can you let go. Remember not to let impulsiveness ruin your wallet.

In addition, it is necessary to establish an account fund curve and compare it with the overall market trend, review one's trading records, make an accurate evaluation of oneself after familiarizing oneself with one's trading habits, assess one's predictive ability, risk control and tolerance, and finally choose the most suitable sub warehouse operation plan for oneself.