After buying a fund, you must learn to stop profit and stop loss. Many investors only know about stop profit but not stop loss. In fact, stop loss is as important as stop loss. Timely stop loss can To reduce your own losses, when is the right time for a fund to stop losses?

When is the right time for a fund to stop losses?

1. Fund performance continues to deteriorate. Whether it is a stock or a fund, performance is forever. King, if a fund's performance gets worse or continues to be poor, don't hesitate to sell it quickly. Otherwise, if you wait any longer, you will only lose more, or even be trapped if you can't sell it.

2 There is a risk of liquidation. When you find that the size of the fund you hold is getting smaller and smaller, or the net value is getting lower and lower, and there is a risk of being liquidated, stop your losses quickly. Although the liquidation of the fund does not It means losing all your money, but when it comes to being liquidated, you will only lose more money.

3 Change of fund manager. Monetary funds and passive management funds have little impact when fund managers are replaced. However, the replacement of fund managers of stock or hybrid funds will test the choice of new fund managers. Stock timing ability, and changes in fund managers’ investment strategies will also directly affect fund performance.

4 It is about to enter a bear market. It takes a process for a bull market to enter a bear market, but once it enters a bear market, most funds will plummet. If you sell them in time before entering the bear market, you can get out in time. Otherwise, once you enter a bear market, you will either lose more or be trapped for several years.

5 If you are not optimistic about this fund, there are many things involved. For example, you find that the investment style of this fund is different from your own, or you find that the fundamentals of this fund have deteriorated. If so, sell immediately, otherwise the risk of holding this fund will increase, and it will also make you unhappy.

6 If there is a thunderstorm or bond default in the stocks held by the fund, if you buy a stock fund, you should also pay attention to how the stocks you hold are doing and whether a black swan event has occurred. If a certain stock held by a bond fund is If a bond defaults, it will also cause the fund to fall.

If you don’t know how to stop losses after buying a fund, you can actually ask yourself how much loss you can bear with this fund and see where your psychological bottom price is. You can also set a stop loss percentage, such as If the fund falls by 10%, it is your psychological price of losing money. If the fund falls to this point, sell it quickly.