First, when the fund is about to return to its capital, we have experienced a long-term floating loss stage, and the funds in our hands are all green, and we don't want to open an account at all. But suddenly one day, it seems that the market is getting better and the fund is going up. The first reaction of most people is that they can finally get rid of it and leave at once. Because losing money is too painful, they will choose to sell the fund at this time. Selling the fund may avoid the risk of losing money again, but at the same time you may also avoid the risk of losing money again.
We can't buy funds for the purpose of selling them. This will only lose money and deduct a lot of expenses.
Second, when the market rises, 99% people's first reaction at this time is to buy less at first. This feeling is sometimes more painful than losing money. At this time, it is easy to get to the top, and they will continue to add money to it, for fear of missing such a good opportunity to make money. But in practice, after the general market is reflected by us, the high probability is the rising stage. At this time, jiacang is easy to buy at a high point, and the risk is too great. It doesn't shine when it goes up, but it hurts to think about it when it falls.
Third, when the news is flying all over the sky, the market is generally at the highest point, and it is also the craziest time for various institutions to publicize. For example, some fund companies will publicize the illusion that the market can continue to rise, so that people are willing to buy their new funds. The fund company is not in the same boat as us. What they earn is the handling fee for buying funds. The more they buy, the more they earn.
If you encounter the above three situations, you must be cautious. Many times profit and loss are in our choice.