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Is the stock decline to cover the position or cut the meat? What's the technical term?
one? Is the stock decline to cover the position or cut the meat? What's the technical term? ? The problem is highly concerned. Let me talk about my understanding. First of all, what does it mean to make up the position? To make up the position means to buy more of this stock to lower your own cost. In technical terms, you can also say to make up the position. Let's talk about the meaning of cutting meat. Cutting meat means that your stock price has fallen and you have lost money, but in order to prevent further decline, you sell it and cut meat. The technical term for cutting meat is stop loss. If it falls, should it cover the position or cut the meat? This mainly depends on your view of the market outlook. You think that the market outlook will increase your position, and you will cut the meat if it falls. Here are the details. I. What do you mean by covering positions?
For example, I bought a stock, and my position cost was 1 yuan, and now it has dropped to 9 yuan per share. I think this stock will rise to 11 yuan or even higher, and I am optimistic about it, so I will continue to cover my position, lower my cost and make more profits then. Such a set of operations, that is, in the low position, fell to 9 yuan, and carried out the operation of covering positions and adding positions. 2. What do you mean by cutting meat?
For example, I bought a stock, and my holding cost was 1 yuan. Now it has dropped to 9 yuan. I think it will drop to 7 yuan or even lower, so I don't like him, so I will sell it and cut meat to prevent the loss from expanding. Cutting meat means to be determined and sell the positions that cut off your losses. 3. Should the decline cover the position or cut the meat? < P > So what should the decline cover the position or cut the meat? This is mainly up to you. The current share price is 1 yuan, and it has fallen to 9 yuan. If you think it will rise above 11 yuan and even higher, then you can make up your position. If you think it will continue to fall to 7 yuan and 6 yuan, then you should cut the meat and stop the loss to prevent our loss from expanding.
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