Many times, when our fund goes up, we rush to buy it. On the third day after buying, the fund fell, and the fund fell, so we quickly sold it. After the sale, the fund rose the next day and the third day. This situation is just the opposite. What is the reason?
Here we only analyze the short-term situation of the fund.
The reason why the fund goes up when it is bought and down when it is sold is because you haven't figured out the trading mechanism of the fund yet. The fund adopts the trading mechanism of T+2, which roughly means that it can be bought today and sold two days later, but there is another situation where the fund can buy today and enjoy the income tomorrow. In other words, if you buy it today, you will bet on tomorrow's ups and downs. Therefore, you can't buy stocks today, you can show gains regardless of ups and downs, and you can sell them tomorrow. The stock is T+ 1 and the fund is T+2.
When operating a fund, the thinking of ordinary people is to buy when it goes up and sell when it goes down. Often this situation will cause us to lose money as a fund. If this is the case, you must change your way of thinking and buy funds with reverse thinking. Conversely, you can reverse the profit and loss.
When should funds be bought and sold?
The fund has gone up a lot, so we must be aware of the risks and lighten up our positions. If the fund falls much, it is necessary to seize the opportunity to make up the position. This is what Buffett said. If others are afraid, they will be greedy. If others are greedy, they will be afraid.
Before buying a fund, you should set a psychological expected return. If the fund you hold has risen to a certain extent and reached your expectation, you should lighten your position or take profits in time. In this way, you can keep your income.