Is it better to keep holding onto the position after following the trend or to increase the position midway? Practical Skills

Is it better to keep holding onto the position after following the trend or to increase the position midway?

When facing a stock with a good trend, we should stick to holding it. The most common saying in the stock market is not to resist the trend. Trend is the most important part of stock trading and a key knowledge point that all stock investors must master. Many large institutions have conducted in-depth investigations on stock investors in the stock market, and most people who make stable profits are trend investors. In trend investing, how much you can earn and whether you can hold this trend to a relatively high level depends on your holding determination and skills.

When a stock trend is maintaining an upward trend, it is certain that the position will remain unchanged. Whether or not to increase the position midway depends on how much your total position is. When you find that your current stock trend is good but feel that you have bought less, you can gradually increase the position midway. The way to increase the position can be determined based on the overall market trend and the trend of individual stocks on the intraday chart.

But all stock investors must understand one thing: trend investing does not mean holding a stock for a long time without moving. Most of our A-shares have a fluctuating upward trend, so in the process of trend holding, we need to understand that it does not mean not operating. We need to use technical judgment to ensure that the main capital of each stock is consistent. When there is a significant increase in short positions, we need to reduce them.

So is it better to keep holding onto the trend or to add positions midway? My summary is that when you find that the trend of a stock is good and there is no obvious decline, and it is still at a low level and just starting to rise, you can increase your position appropriately (of course, if you start from a low level and are already fully invested, then you must firmly hold the stock and wait for an increase). However, while increasing your position, stock investors must pay attention to whether the stock price is high or low. For example, if you originally had a bottom position of 100000 yuan and held the stock for a long time, but it increased by 50% or more, and then you bought 100000 yuan or more more more more than your previous bottom position, this operation method is wrong. It is best not to increase the position by more than 30% of your bottom position every time

Principle: When you increase your position at a high level beyond your previous holdings, it means that your profit will be greatly reduced. Originally, you earned 50% of your 100000 principal, but if you increase your position again at a high level, it means that your previous profit will fall by 25%. Therefore, it is recommended that stock investors learn more about this type of stock trading strategy, so that they can make significant and stable profits in the process of trading a stock.