The Law of Grid Trading

Net trading requires a relatively large amount of capital, and in principle any point can be accessed, but it is important to manage funds. If the current point is difficult to judge high or low, for example, to operate one stock, you can invest half of the funds for the first time, and then prepare for a 50% decline in the stock price. Specifically, the operation is to draw a fixed grid of 5%, divide the number of shares into 10, sell one share for every 5% increase, buy one share for every 5% decrease, so that the stock in hand can cope with a one-sided rise in the stock price of 10%, the capital can be paid for a one-sided decline of 10%.0.0410 = 2%, annual returns are over 25%; conservatives say that even if the stock price fluctuation is small, hedging twice a month is not worse than banks; from the current Chinese market, no stock is so volatile. If the index fund is better, no worries about fluctuations, and less processing fees.

The above strategies can also be optimized. For example, large grids (e.g. 10%) and small grids can be used at the same time, or the grids can be divided more finely, for example 2.5% or even 1.25%, but the hedging spread should not be less than 5%. In short, it is good to capture more volatility. This way, as long as the stock price fluctuates within the set range, it is always profitable. What do you mean? Selected stocks are based on volatile large-scale stocks and index funds, such systemic risks are less, such as China Life and Security, the current stock price is only a waistline, there will never be a situation of falling from 100 to 10. If there is a situation of a one-sided rise in the price of the stock, the annual returns have been reached in a short time, it is easy not to pursue.