Firstly, it should be clarified that adding positions is an investment technique. It is a tool, not an end in itself. The purpose of investment is to obtain returns with minimal risk. Therefore, it is only valuable when adding positions can help investors achieve the above goals. Otherwise, it must be discarded. This is just like what the Diamond Sutra says, all laws are metaphors, and laws should be abandoned, let alone illegal ones.

1、 Applicable objects for warehouse addition

In terms of analytical ability, at least investors who can make accurate judgments about the direction of the next week are required to use the strategy of adding positions (which requires investors to not only look at charts, but also pay attention to fundamentals, weather, policies, etc.). In terms of operational rhythm, adding positions is suitable for investors who combine short and medium periods. In terms of capital volume, adding positions is suitable for larger funds. When 80% of the positions are available, adding positions should not be considered, or when the ratio of reserve funds to current funds reaches or exceeds 1:1, it is suitable for the operational skills of adding positions.

2、 Why not open the warehouse in one go

There are usually several situations where adding inventory is necessary:

1. If the funds are too large and enter the market at once, it is likely to be discovered. Taking Strong Wheat as an example, if it opens for more than 150 yuan at once and continues to do so for several consecutive days, it is easy to be targeted and eaten up by institutions. At this time, it is necessary to adopt the technique of breaking down the whole into small parts and adding positions.

2. It is well known that speculative markets are not always rational when changes in fundamentals are discovered, but the technical aspects have not yet been reflected. They often have an emotional side, such as when the fundamentals are good, the chart often needs to shake again and may even fall, and vice versa. At this point, if you want to occupy a favorable position but are unwilling to take on more volatility risks, you need to adopt the technique of investing in stages.

3、 Use of additional warehouse

Adding positions is usually done in a pyramid style. Taking long as an example, buying a portion at the bottom, such as 80 lots, and then buying another 60 lots when the market reaches a certain level. As the market rises again, buying another 40 lots, and so on. Because the quantity bought at low levels is always greater than that at high levels, one can always ensure that their holding cost is lower than the market average price. When it is believed that the market is about to turn, it is advisable to level out at once or in two stages. Pay attention to leveling out as quickly as possible during the leveling process.

4、 Five tips for adding inventory

1. Before deciding to adopt this technique, one must be very familiar with the rules of the variety to be operated and the changes in one's mentality at each stage of the variety. To achieve this, it is necessary to know oneself and one's enemy. Tracking the variety should at least have a process of going from rising to falling or from falling to rising.

2. This method can only be used when the fundamentals support the variety to break out of a unilateral trend. If it is a volatile trend or a reversal, it is often not worth the loss.

3. We must follow the principle of pyramid to ensure that our costs are lower than the market.

4. Adding positions is often combined with rolling opening and active locking.

5. Always realize that adding positions is just a technique, adding positions is for profit, don't add positions just for the sake of adding positions.