Stocks must learn to control the use of funds and manage them scientifically. When trading any stock, strive to control risk first and then discuss returns. Retail investors are always lagging behind in today's world because they are in an unequal and disadvantaged position compared to the main players. So if you want to achieve good returns in the stock market, you must have a set of scientific fund management ideas and simple and practical operational concepts, and never forget the risks.

Stop loss for short-term stocks is set at 5%. The median line is considered to be set at 15%. Generally, when stocks enter a downward trend, there is usually room for further decline, and it cannot be compensated without complete stabilization. Generally, if you don't have a portfolio of more than 10%, don't consider replenishing your position. Replenishing your position is not a good solution. For operations, it may appear to lower the cost on the surface, but if you have more funds, the risk is greater at home. If you continue to decline, your mentality may be completely ruined and you may lose more, which is not worth the loss. I personally think that when it comes to stocks, it's best to stick to stop loss as it's the most proactive approach.

Below, Yang Yufeng will explain in detail the replenishment operation of stocks after being trapped!

1、 Master some basic principles of replenishment:

Although restocking may seem simple, there are still some principles that need to be adhered to. Generally speaking, if a stock experiences a technical break, it is absolutely not advisable to replenish the position. Instead, it is important to carefully observe the subsequent trend before making a decision. If investors hold obscure or weak stocks, they cannot replenish their positions. Because these individual stocks have been dormant in relatively low positions for a long time, with stagnant stock characteristics, no funds to pay attention to, and no hot topics to speculate on. So, adding these stocks will occupy funds for a long time without being profitable. If investors hold strong stocks and popular stocks sought after by the market, they can make up their positions.

2、 Should stocks be overstocked and replenished? Explain in two situations:

Scenario 1: After buying for the first time, it fell

If a stock costs 10 yuan and you buy 10000 shares; After buying it, it dropped by 1 yuan, and you added another 10000 shares;

Now this stock is at the level of 9 yuan. From a mathematical perspective, the probability of rising or falling by 50 cents is the same, both being 50%;

If it rises to 9.5, your result will be a return on investment and you won't make any money; But if it drops to 8.5, your result is a total loss of 20000 yuan.

That means you took a risk of losing 20000 yuan with a result that doesn't result in a loss at most.

Scenario 2: After the first purchase, the price increased

Assuming 10 yuan worth of stocks, I bought 10000 shares; After buying, the price increased by 1 yuan, and you added 10000 shares;

Similarly, at the price of 11 yuan, the probability of a 50% increase or decrease is the same;

If it rises to 11.5, your result is to earn 20000 yuan; If it falls to 10.5, your result will be a return on investment.

If you sell it by 10.5, at most you won't make any money, but you have exchanged it for a profit of 20000 yuan.

3、 Precautions for replenishment:

1. Before deciding to adopt this technique, one must be very familiar with the rules of the variety to be replenished and the changes in the trend of the variety at each stage. To achieve this, the tracking of the variety must have at least one process from rising to falling or from falling to rising.

2. This technique can only be used when the fundamentals of the market support the trend to move out of a one-sided trend. If it is used during a period of volatility or reversal, it is often not worth the loss.

3. Always realize that restocking is just a technique, and restocking is for making money. Don't restock just for the sake of restocking.