Position control know-how Money Tips

Category: Money tips Release Date: 2007-03-18

Position control in fact a means of risk control, imagine, if you can 100% spotted afternoon, but also to talk about position control? Well out of all positions each time, because over the efficiency of warehouse operations from the perspective of the use of funds is always the most efficient means! Therefore, if some person or institution to see what claims to be able to accurately predict the stocks Tips afternoon and again to remind you that sub-stores to operate in batches, then you can conclude that is a liar or exaggeration, because thorough understanding of and risk control in itself is self-contradictory The.

On a number of speaking out of turn and then back to the topic, why talk about position control is necessary to say "Analysis and Forecast of the market" mean? A bit of experience in the stock market investors know that stock prices is a more random, even a purely technical analysts also admitted sending shares to a certain extent with the randomness, our technical analysis of the originator to send Charles H · Road is also that the greatest impact during the day by man-made clutter and most meaningless. And, if there is a predictable way, because all made the same prediction, then the prediction itself will also affect the volatility of stock prices which led to forecast failure. From all times to disclose any information or methods to see that no one can completely predict the stock market trends (estimated to be not open the same). Stock price volatility of the above reasoning derived, at least to some extent is unpredictable. Well, since with the unpredictable nature of stock price, so of course there is a risk, so we must introduce the concept of risk control and position control is the real risk of the most direct control methods.

Position control under normal circumstances from the following two angles:

The first is financial (stock) the ratio of the sub-warehouse strategy: usually equal parts distribution method, and two kinds of pyramid distribution method. The so-called equal parts distribution method is that money is divided into several equal parts, buying a stock of parts, if the stock fell to a certain extent, after buying, then buying the same number of shares the last, and so on in order to dilution. After the purchase up to a certain extent, if you sell some of his shares rise about then they sell part of the operation until the wait for the next opportunity to come. The pyramid distribution method is also the funds to be divided into a number of copies, if the stock fell to a certain extent, after buying a further quantity of stocks to buy than the last, and so on, if the rise is also the first to sell a part of, if continued to rise, then the sell more shares.

Common features of these two methods is more or more to buy, the more the more throwing up. Exactly what sort of distribution method will depend on investor himself, and if investors have a good chance the market outlook of the judge, take equal parts distribution method. Stock price movement in the box can also be taken to equal parts distribution method to win the post. And if investors like bargain-hunting or to judge the market outlook is not very sure, the pyramid, the distribution law is the better choice, because the share of low-cost ownership and maximize profit margins pyramid distribution method to be more than equal parts distribution method sound. With regard to these two methods are more applicable to the investor-band operation (usually the pursuit of low bid), while aggressive investors like the risk-taking does not apply, and Aggressive investors (in the pulled up the process of admission) higher risk due to the participation of individual stocks, so in general should set more stringent stop bit, the more or more to buy a strategy may lead to lose everything.

The second is a sub-species stocks storage strategy: we always see on the egg is placed in a basket or a few baskets of the discussion, and the public that the public reasonable, rational po po said. Here is an old saying: What a way to take what I need to see what investors had. Do have to grasp, on the Yaodingyigu not relaxed, if not quite grasp, they should buy only 2-3 units (bought too much is not convenient for the management and tracking Moreover, the vast majority of investors in the amount of funding is not large), should be noted that bought a few shares should try to avoid duplication of subject matter or the same plate to buy stocks, because of their repeated themes or the same plate has a linkage between the stock, one is not up, the other not much better where to go.

Sub-warehouse strategy is basically a few of the above, but many new entrants will win some friends began trying to buy shares of funds, often get carried away after a number of sweeteners (in fact most new investors are entering the market when the good Quotes, and So start will have a sweetener), and then sue stuck on full warehouse operations, but do not understand the mentality mischief, so you'll understand why so many masters, including many old stock market investors is far greater than the proportion of sub-storage operation logic of new shareholders. So how to avoid impulsive and full warehouse operations once again? The author provides some methods: advance planning, you must have control over the sale of the risk before the sub-warehouses or stop-loss program, if you recruit the stock market you should acquire a small part of the funds operation, has been let go only after considerable experience in buckle down to action, remember ah, do not let impulse to destroy your wallet. Another is the establishment of accounts of funds and the market trend in the corresponding curves and compared to review their own records of transactions, when transactions are familiar with their habits to be a accurate evaluation of their own ability to predict how the how the risk control and affordability, etc., the final Choose one of the most suited to their sub-warehouse operational plans.

The above said are sub-warehouse operation and risk control of the topic, I do not entirely negate the entire warehouse operation, but if you are a more robust type, and has a certain amount of money investors, you have to learn the operation of that sub-warehouse class, and then you can calmly face the ups and downs of the stock market from the risk of a profit.