Although fund investment seems simple, very few people can actually make profits from the fund market. The cumulative returns of most fund investors are likely to be negative, which is a state of loss.
So why do most people lose money when buying funds?
Because of a common problem among investors.
Why do most people lose money when buying funds?
Most people lose money when buying funds, mainly because they follow the trend and invest blindly. Although the fund simply buys low and sells high, and there is only one trading price in a trading day, the actual buying and selling timing of the fund are very important if it wants to make a profit.
Be particular about it.
Most fund investors only look at a few places when buying funds, including fund comment sections, fund historical performance, and fund gains in recent days. Then they start to follow the trend and buy popular funds. They never look at whether the fund is at a high level at this time.
, has it started to retrace? After buying it, it was immediately trapped, and then it began to cover all the way down, and the deeper the trap, the more losses there were.
In addition to being able to buy, the most important thing for fund investment is to be able to sell. As the saying goes, "Those who can buy are apprentices, and those who can sell are masters." Funds will not always rise. If they rise for a long time, they must fall. This truth must be kept in mind.
When the fund rises to a certain height, there will be a period of correction, and selling before the correction is a good thing. It does not mean that you have to hold it all the time if you buy the fund, and you will make a profit if you hold it.
Buy when the fund falls to a certain level, sell when the fund rises to a certain level, and buy again when the correction is over. You will earn more if you hold it all the time, thinking that you can make a profit if you don't sell, but you don't know that you could get more.
Because of this kind of thinking, it is difficult to obtain a good return in the fund market, and sometimes even losses occur.
Although fund investment saves time and effort and does not require monitoring the market every day, it does not mean that investors can just leave it alone after buying. They also need to pay attention to the trend of the fund at all times and grasp the actual take-profit and stop-loss at all times.