If you stare at the market every day, the more you want to operate, the more you want to buy funds with good performance and replace funds with relatively poor performance. In the long run, the handling fee will be deducted, which may not only make money, but also lose money. The chief culprit of your loss is short-term trading.
First of all, from the cost point of view, generally speaking, the fund's formalities fees, including redemption fees, have a ladder relationship with your holding time. In the trading rules of fund investment, there is such a provision that if the redeemed fund is held for less than 7 days, the fund company will charge a redemption fee of not less than 1.5%. The longer the fund is held, the lower the cost, and the redemption fee can be waived if it is held for a certain period of time. The figure below shows the redemption fee standard of Great Wall Jiuding Flexible Allocation Fund I intercepted. We can see that those who hold it for more than one year are exempt from redemption fees.
From an operational point of view, we always want to maximize profits. When we start to make money, we want to remain profitable, so we choose to redeem or redeem the stop loss when the market starts to fall, and then choose the right time to enter the market to subscribe. Buy at a low point in the market, sell at a high point, then continue to seize the low point of buying and sell at the next high point. This is band operation. This is the most ideal way to obtain excess market income, but can you guarantee to get involved at the right time?
The answer is no, most people can't grasp this point, otherwise, how can there be waves of "leeks" on the market to harvest? There are no accurate rules for market returns, and none of us can accurately predict market trends. The market is unpredictable.
Band operation will lead to short-term intraday trading, and band operation is based on the judgment of the market. The more you try to judge the market through your own ability, the more likely you are to make mistakes. Almost all investment bosses will remind ordinary investors: don't predict the market, don't judge the market.
You think your fund has reached a high point, so you choose to redeem it. After redemption, you find that the market is still rising. At this time, if you want to apply again, you are worried that the net value will fall immediately, which will entangle you. Maybe you can grasp the band once or twice, but after a long time, your probability of success will get closer and closer to 50%, half of which will be successful and half of which will fail. Even if you count the mountain opening fee, you will still lose money.
In order to do a good job in fund investment, we must abandon the concepts of speculation and short-term operation and cultivate the thinking of long-term value investment. There is a famous saying on Wall Street that the market is driven by greed and fear. Exactly. On the one hand, the market day trading is that investors are greedy and want to earn more and enter the market. Fear makes investors afraid that losses will turn back frequently between subscription and redemption, which eventually creates a short-term trading market.
If you want to do a good job in fund investment, you must look down on the market, look on coldly and get rid of short-term operations. As I heard a fund expert say: short-term operation is an evil concept, don't even think about it!