Position control is actually a means of foreign exchange risk control. Imagine if you can look at the position control after 100% accurate. Every time you go in and out of the warehouse, because the full warehouse operation is always from the perspective of capital efficiency. It is the most efficient means! So if you see the secrets of some people or organizations that can accurately predict and remind you to operate in batches, then you can conclude that they are liar or exaggerated because they are accurate and risk-controlled. It is self-contradictory.
After talking about some off-topics and then returning to the topic, why do you talk about the "analysis and forecasting field" when it comes to position control? Investors who have some experience in the exchange know that the exchange rate trend is more random, even if it is Pure technical analysts also acknowledge that the exchange rate is random to a certain extent. Our technical analysis of the originator Charles H also believes that daytime clutter is the most influential and meaningless. And if there is a predictable method, because everyone makes a consistent prediction, then the prediction itself will also affect the fluctuation of the exchange rate and lead to prediction failure. From the information published in ancient and modern China and abroad, no one or method can completely predict the trend of the exchange (the same is not expected to be disclosed). The above reasoning shows that exchange rate fluctuations are at least somewhat unmeasurable. Then, since the exchange rate is unpredictable, there is naturally a risk, so we must introduce the concept of risk control, and position control is the most direct risk control method in actual combat.
Position control generally refers to the following two perspectives:
First of all, the allocation strategy of the ratio of funds (foreign exchange): there are usually two methods of equal distribution and pyramid distribution. The so-called equal distribution method means that the funds are divided into several equal shares, and one aliquot of foreign exchange is bought. If the foreign exchange falls to a certain extent after the purchase, then the same amount of foreign exchange as the last time is bought, and so on. If you buy to a certain extent, you will sell a portion of the foreign exchange, and then sell a portion of the foreign exchange, until the opportunity to wait for the next operation. The pyramid allocation method also divides the funds into several parts. If the foreign exchange falls to a certain extent after buying, it buys more foreign exchange than the previous one, and so on. If the rise is also the first to sell a part, if it continues to rise, then Sell more foreign exchange.
The common feature of these two methods is that they are falling more and more, and they are getting more and more thrown. It is up to the investor himself to decide which allocation method to take. If the investor is more confident about the post-judgment, he should adopt the equal distribution method. When the exchange rate is in the box movement, an equal distribution method can also be adopted to collect the difference. If the investor likes to bottom out or is not very sure about the post-judgment, the pyramid allocation rule is a better choice because the pyramid allocation method is more efficient than the equal distribution method in terms of lowering the cost of holding shares and maximizing the profit margin. . Both of these methods are more suitable for investors in band operations (usually pursuing low buys), but not for aggressive investors who prefer to take risks. Aggressive investors (enter the process during the pull-up process) Due to the high risk of participating stocks, it is generally necessary to set a stricter stop loss position. The more the buying strategy is, the more likely it will be.
The second is the division strategy of the currency variety: we always see the discussion about whether the eggs are placed in a basket or a few baskets, and the public is justified, and the woman said that she is reasonable. Here is an old saying: Which method to take depends on the investor himself. If you are sure, you should insist that you don’t relax. If you don’t grasp it, you should buy 2-3 stocks. (Buy too much is not convenient for management and tracking. Moreover, the vast majority of investors’ funds are not Very large), it should be noted that the few foreign exchanges purchased should try to avoid buying duplicate themes or stocks of the same sector, because foreign exchange with duplicate themes or the same sector has linkage, one does not rise, the other is not good. Where to go.
The splitting strategy is roughly the same as above, but many new friends will start to buy foreign exchange with a little money, often forgetting after getting some sweetness (in fact, most new investors are entering the market when they are in good market, so At the beginning, there will be some sweetness.) Then, when you are full of positions, you will be stuck. It’s not that you don’t understand it, but you’re mentally guilty. So you will understand why many exchange experts, including many old investors, have a much larger proportion of operations than new investors. So how to avoid the mistakes of full warehouse operation due to impulsiveness?
The author provides some methods: prior planning, you must have a risk control position or stop loss plan before buying and selling, if you are a new recruit, you should take one first. A small part of the money operation, with considerable experience before you can let go, remember, don't let the impulse ruin your wallet. The other is to establish an account fund curve and compare it with the market trend, review your own trading records, and make an accurate assessment of yourself when you are familiar with your trading habits, how your forecasting ability, risk control and tolerance, etc. Choose the one that best suits your position.