When investing in a fund, is it attractive if there is a way to reap the benefits of the fund in a short time? Such a short-term trading method is widely rumored on the Internet, and it is also very hot. That's the seven-day trading method of the fund.
Buying funds is only a short-term operation for 7 days, which is called "seven-day trading method". The so-called "seven-day trading method" refers to "buying a fund for seven days, blindly guessing the purchase and redeeming it." Usually, we don't study or learn the selection method of funds at all, just look at the so-called hot industries mentioned in various news, and buy them after self-righteous analysis. When the market is good, it is particularly satisfying to earn 5 points or 7 points a week. Then follow the trend and fire a fund in the short term.
When the market is soaring, this method may indeed make money, but when the market is plummeting, this method is completely ineffective.
There are many investors in the market. Once they taste the sweetness of making money in this way, they will become more and more courageous, more and more blind and confident, and more and more greedy. At first, I just played with small money. Later, I will feel dissatisfied, and I will probably increase my position and want to make big money. Once they encounter a stampede, they will not only lose the money they earned in front, but also lose the principal of the additional positions behind them.
This "seven-day trading method" is really extreme. But in reality, the actual practices of many of our investors are similar to this trading method, except that the time may be longer, the operating frequency is not so high, and there are essentially short-term arbitrage motives.
In fact, excessive trading, whether stocks or funds, is a great loss of profits for 99% people. Of course, behind this is human nature. No one wants the floating profit of the account that has been earned to be greatly reduced or even cleared because of the market decline. This feeling of gain and loss is really bad.
But this is the charm of the capital market and the charm of investment. If it was so easy to make money, so many people wouldn't go bankrupt in the stock market. On the one hand, the investment test is our knowledge system and cognitive scope, on the other hand, it is a test of our ability to control emotions, that is, human nature.
The fund is a long-term investment transaction.
First of all, investment funds must be long-term investments. Don't do small band operations, don't try to make money in every small band, don't want to take a retreat at all, and want to earn every price difference. This idea is a bit dangerous. Sometimes it is ok to earn a little money, but you must not earn the most money.
Don't try to predict the short-term market.
No one can accurately predict the short-term market, you can't predict it, I can't predict it, Buffett can't predict it, and no one in the world can accurately predict it.
Predicting short-term results is often chasing up and killing down. Day trading, not to mention investment funds, is stock speculation, which is often the biggest source of losses.
Believe in the power of professionalism
Originally, since the fund was selected, both index funds and active funds were handed over to more professional institutions and professional fund managers. We just need to plan and allocate the overall funds according to our own investment strategy, whether it is fixed investment or one-off investment in batches, and then wait for the rose of time, so that our trusted professional team can help us make money steadily.
Countless history and data have been repeatedly verified: for most investors, choosing a good fund and making long-term investment is the reliable method.