How much should the fund rise if it falls by 5%?
The calculation formula of rising cost recovery is: rising cost recovery range =1(1-loss range)-1. For example, when an investor loses 5%, the recovery rate is =1(1-5%)-1= 5.3%. Therefore, when the fund purchased by investors loses 5%, it needs to increase by 5.3% to recover the funds. If it is another decline, you can also use this formula to draw inferences. For another example, when investors lose 50%, the rate of increase is =1(1-50%)-1=100%. Therefore, 100% needs to be increased when the fund purchased by investors loses 50%.
If investors are optimistic about the fund, they can consider covering the position when the fund falls, sharing the cost of the position by increasing the share of the position, and returning the funds with a lower increase. They can also use the trend of the fund to conduct high-selling and low-sucking operations and earn the difference to share the cost of the position.
When is the best time to buy funds?
Buy when the fund goes up and buy when it goes down. For example, when a fund goes up and buys, it is generally a short-term fund investor, who will invest more money and then stop the loss in time when making money, but the risk is relatively high. When chasing up, if the fund market is not good and suddenly plummets, he will be trapped.
In fund investment, there is a saying that "the apprentice will be bought and the master will be sold", which shows that the selling point of the fund is more difficult to choose than the buying opportunity. That's all about "how much should the fund rise when it falls by 5%? When is the best time for the fund to buy?" I hope it helps you.