Generally speaking, retail investors who are new to the market have a common operation of buying or selling all their shares, and the disadvantages of doing so are obvious. In the early stages of buying shares, traders start to regret the number of shares they bought too early when they find that the share price has fallen slightly, and then feel some comfort in their hearts when the share price rises.

The higher the stock price rises, the stronger the excitement it brings;when the share price starts to fall after reaching its peak, the investor inevitably feels some loss, but as the price is still profitable at this point, the sense of excitement is stronger than the sense of loss and looks forward to the next rise.

However, the reality is often harsh and instead of continuing to rise, the share price is likely to lose more and more money, with profits turning into losses, at which point the investor will begin to regret not having sold earlier. Once the investor is controlled by the fluke mentality that it may still rise, as the stock falls further, disappointment, anger and nervousness come together, the question of whether to sell or not to sell comes to mind more and more frequently, the brain becomes blank due to overthinking and loses its normal judgment, and finally sells all its chips in extreme irrationality and panic. Many retail investors have had similar experiences and experience has told made them realise that it is very important to control the number of shares they buy in a rhythmic manner, so how do you effectively control the acquisition of shares?

As stock prices fluctuate, so should the number of shares. For short-term operations measured in days, the average change in the number of stocks in a single day is called the average and the change relative to the average is called a fluctuation in quantity. The number of shares is related to the stock movement and the characteristics of the stock, stop-loss strategies, timing of buying, etc.The average position can be around 50%. If the investor's account uses CFDs, the average number of shares will be less than 50%; if the stock is rising, the average can be increased appropriately, and the more pronounced the rise, the higher the average will be. When a stock is falling, the average number of shares can be reduced appropriately.

Each stock has different characteristics. Some stocks are rising rapidly, some are slow, some are volatile, and some are less volatile. There is a high degree of price overlap on the K chart for two consecutive days for stocks with large fluctuations. Whether they are rising or falling, they have the opportunity to short, and the number of stocks may fluctuate more. On the contrary, if the stock is not active, has little volatility, and has no short selling opportunities, then the number of stocks can remain unchanged, or increase gradually when the stock is rising, and should be resolutely reduced when the stock is falling.

（Writer：Frid）