A lof fund is a fund of funds, that is, a fund is issued, but its investment target is a fund.
LOF is the abbreviation of LISTEDOPEN-ENDEDFUND.
It is a listed open-end fund.
It has the characteristics of both funds and stocks.
It can be bought and sold on exchanges and online just like stocks.
General funds can only be purchased or subscribed, and transactions are completed on T+2.
LOF funds can be bought today and sold tomorrow just like stocks. First of all, the linkage between LOF funds and stock indexes traded in real time on the exchange is much higher than that of open-end stock funds.
Usually fund managers of open-end stock funds can maintain performance growth in volatile markets through their excellent stock selection skills. However, when you directly buy and sell LOF funds, you will find that it is very difficult to make profits in volatile markets; the most important thing is that in volatile markets, it is very difficult to make profits in volatile markets.
It is just a temporary balance between the long and short sides. When this balance is broken in the future, the market will choose the direction.
For some outstanding fund managers who control open-end stock funds, it is entirely possible to avoid downside risks by adjusting asset allocation ratios. However, as an ordinary investor, you do not have this ability, so when the market behaves sideways,
When in a certain state, do not blindly buy based on subjective guesses or other people's opinions.
Secondly, the short-term market trend is easily affected by various factors and causes sudden rises and falls, causing you to lose emotional control in the face of unexpected changes.
Therefore, every time you have the urge to buy or sell, you must first draw up a correction plan. The plan should detail the reasons for doing so and the remedial measures in case of mistakes.
If you can list the corresponding content item by item, it means that you were rational enough at the time, and it also means that you can calmly deal with the situation you do not want to see, and you can naturally implement the operation.
Finally, even if the market trend is upward, stop loss points and take profit points must be set.
After selecting the investment target, first calculate the distance between the proposed purchase price or the current stock index point and the upper pressure level, and then calculate the distance between the proposed purchase price or the current stock index point and the first effective support level on the downside.
The upper pressure level and lower support level are assumed to be profit-taking points and stop-loss points respectively.