When the fund has lost 30%, the fund is basically at a relatively low level. When the fund is at a low level, adding positions can reduce the cost of investors. The lower the cost, the less risk investors will take, and the greater the probability of recovering capital or generating income in the future.
However, there is a premise: it is meaningful to choose high-quality funds only by increasing the positions of high-quality funds. If you choose a poor fund, then adding positions will only increase the risk, and the more the fund falls, the greater the loss.
Funds are floating income products, and the rise and fall of funds are determined by the target of investment. When the investment target goes up, the fund goes up, and when the investment target goes down, the fund goes down, making it even more difficult for investors to return to their capital.
When a fund loses 30%, it is difficult to close the position and the risk is great. Generally need to add positions, but the premise is optimistic about the fund. If you are not optimistic about the fund, it is most important to stop the loss in time and keep the rest of the money. Some bad funds may fall by 30%~50%, even if they fall to 30%, they may continue to fall, so don't add positions if they can't bear it.
When you lose money again, you can refer to your past performance to see if it has plummeted in recent days or if the fund has fallen for a long time. It is necessary to analyze the reasons for the decline of the fund. If you watch it, you will increase your position. If you are not optimistic, you will not add positions and redeem them in time.