Is the stock decline to cover the position or cut the meat? What is the technical term?

One? Is the stock decline to cover the position or cut the meat? What is the technical term? ? This issue is highly concerned. Let me talk about my understanding. First of all, what does covering positions mean? To make up the position is to buy more of this stock and reduce your own cost. In technical terms, it can also be said to cover the position. Let's talk about the meaning of cutting meat first. Cutting meat means that your share price has fallen and you have lost money, but in order to prevent further decline, you sold 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 the market outlook will increase the position, and if it falls, you will cut the meat. Here are the details.

1. What do you mean? For example, if I buy a stock, my position cost is 100 yuan. Now it's down to 90 yuan per share. I think this stock will go up to 1 10 yuan or even higher. I am optimistic about this, so I will continue to make up my position and reduce my cost, so that I can make more profits. Such a set of operations, that is, in the low position, fell to 90 yuan, to make up positions and add positions.

2. What do you mean by cutting meat? For example, if I buy a stock, my position cost is 100 yuan. Now it has fallen to 90 yuan. I think this stock will fall to 70 yuan or even lower. I didn't like him, so I sold it and cut the meat to prevent the loss from expanding. Cutting meat means making up your mind to sell a stop-loss position.

3. Should I make up the position or cut the meat if I fall? It's mainly up to you. At present, the share price 100 yuan has fallen to 90 yuan. If you think it will rise above 1 10 yuan, and even higher, you can cover your position. If you think it will continue to fall to 70 yuan and 60 yuan, then you should cut your losses to prevent our losses from expanding.

Remember to like+pay attention to+collect after reading.