Six Basic Principles of Position Management:
First: Do not operate with a full position; always maintain a certain proportion of standby funds:
Second: Buy and sell in batches to reduce risk, average costs, and amplify profits. The advantage of buying in batches when the price is down and selling in batches when the price is up is that your average price is lower than others, resulting in higher profits.
Third: When the market is weak, hold a light position; in a bear market, it is best not to exceed half a position. During a strong market, you can increase your position appropriately; in a bull market, the maximum position should be 80%, with the remaining 20% as short-term or standby funds to respond to unexpected events.
Fourth: Adjust positions accordingly as market conditions change, and appropriately increase or decrease positions.
Fifth: When the market is sluggish, you can hold a short position temporarily and wait for opportunities to arise.
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