Secure the funds! Practical skills in the core process of weak position management

In market investment, it is ultimately necessary to implement effective allocation of funds and position management. The purpose of controlling positions is to control one's mentality. So as to objectively and calmly face the market as much as possible, and achieve better trading results. After 5178 points on the stock market, the deleveraging effect became prominent, accelerating the outflow of funds from high positions. Both the stock index and individual stock prices experienced a short-term rapid decline, and the situation of a thousand stocks falling by the limit and a thousand stocks rising by the limit has seriously disrupted the normal operation of the market. The situation is indeed in an imbalanced state, and investors are extremely panicked. Of course, fortunately, after a year and a half of rebound, the overall market index has hit a bottom of 2638 points and is now in a relatively stable pattern. The management's active intervention in protecting the market has played a positive stimulating role in stabilizing the investment mentality.

Every rise and fall in the market is actually normal, and if there are some complex human factors involved, there will definitely be an imbalance. Risks always rise, opportunities always fall. So, as the author has repeatedly emphasized recently, the core of market participation still lies in the establishment of its own trading system. If you know that the increase is too large, do not excessively chase after it. If you really see an opportunity after the index crash, you should actively lay out your strategy. Since its establishment, the Chinese A-share market has actually experienced three index highs. We believe that mature investors can observe the repeatability of trading patterns. The process of repetition is not simply copying, but requires a detailed summary of similarities and a positive summary of differences. The bull market is short while the bear market is long, which means that investors need to maintain a positive adjustment of their positions. Large positions with full positions will definitely appear in a deterministic index rise or individual stock wave rise. It is recommended to strictly control the position during bull market fluctuations or bear markets, and maintain a maximum position of 70%. It is necessary to use moderate positions to test the direction of the market, and use a small amount of positions to track the strongest stocks in the market. Since we are in a bear market pattern, the upward trend is often a rebound process, and the downward trend is often a period of band adjustment A weak pattern requires more position defense and avoiding downturns. If you enter the market with a large position and experience a wave adjustment, your losses will be greater. Avoiding small positions to pass the time will not affect your mentality. A good mentality is the confidence guarantee for turning the market around in the future. In the bottoming out state of the market, strong themed stocks will be the first to exert their strength, and stocks in sectors that have continuously rebounded at low levels will be the leading stocks with appeal that benefit the most. When you can dynamically adjust your position according to the market, no matter what the market is like, you can sleep peacefully. The emergence of this state often indicates that the market judgment has reached a good level. Knowing how to rest and adjust in a weak situation will make you stronger in the future, because what you retain is your ultimate account funds.