Management measures for crude oil investment positions: rectangular management
[concept of position management]When making long short crude oil, how to enter in batches, and how to stop loss / stop winning to leave the market. Generally speaking, position management does not involve stock selection and timing technology, and a coin toss is used to decide whether to do long or short. In such a random decision, good position management technology can still have stable returns.
Position management technology is very important not only in crude oil investment market, but also in any investment market. This week, we will introduce a variety of position management methods. After learning more position management techniques, I hope investors can win in management.
[rectangular position management method]
Concept:The initial amount of funds entering the market accounts for a fixed proportion of the total funds. If the market price goes in the opposite direction, and then the positions are gradually increased to reduce the cost, the positions are increased in accordance with this fixed proportion, which is shaped like a rectangle, which can be called the rectangular position management method.
advantage:Each time only a certain proportion of the position is increased, the cost of the position is gradually raised, and the risk is evenly shared and managed. In the position can be controlled, the future market direction and judgment of the same situation, will get rich income.
Disadvantages:In the initial stage, the average cost rises rapidly, and it is easy to fall into a passive situation very quickly. The price can not cross the break even point and is in the quilt situation.
As with the funnel-shaped method, the more reverse the change, the greater the position. When it reaches a certain level, it is inevitable to hold the whole position. However, as long as the price changes a little in the opposite direction, it will lead to a position explosion.
Summary:The risk of this position management method is also higher, and the corresponding return is also high, which is different from the funnel-shaped method. The risk of the funnel-shaped method is small in the initial stage, and the greater the risk in the later stage, the greater the initial risk, but it is not very large. At the end of the position, the risk will become as big as the funnel shape. This position management method also applies to aggressive and bold investors.