After the fund falls, we are faced with three choices. The first is stop loss, and we will have actual losses. The second is to hold positions, waiting for the fund to pick up after a period of time. If investors buy at a high level of the fund, the following small series will bring the question of whether the fund can increase its position when it rises. I hope you like it.
The fund you bought has fallen, will you increase your position?
Generally speaking, after the fund falls, you can choose to add positions. The main reasons are as follows:
1. When the fund falls, you can diversify the cost of the fund you bought at a high level by choosing to add positions, so as to turn losses into profits. If you don't add positions, it may take a long time for the fund to rise back.
2. If we choose to invest in the fund, we will add positions at a fixed time no matter whether the fund is down or up. It's just that we can choose smart fixed investment, buy more when it falls, and buy less when it rises.
3. After the fund falls, the net value of the fund will be lower, the transaction cost will be lower, and we can buy more fund shares with the same money. At this time, the chances of adding positions to make money will be relatively greater.
Will you choose to add positions when the fund you buy falls? Under normal circumstances, we choose to add positions, because the benefits of adding positions are greater, but we should also judge the degree of risk of the fund to see if it is possible to be closed. If the fund is liquidated, there is no possibility of turning back. Secondly, when we choose to add positions, we should not choose to buy them all at once, because we can't judge whether the fund will continue to fall and whether it has bottomed out. If the fund still falls by half, we will buy it all at once and then continue to fall, then our losses will be even greater.
We can add positions in bulk. For example, after the fund falls 10%, we will increase the position, and after the fund falls by 20%, we will increase the position. This can reduce the cost of holding positions, and we are getting closer to the opportunity of rebound, so when the fund rebounds, our expected income will be even greater.
Can the fund increase its position when it goes up?
When the fund rises, you can choose to add positions, or you can choose not to add positions, which should be judged according to the following points:
1. Look at the valuation of the fund. If the fund is overvalued, then it is best not to choose jiacang.
2. According to the historical performance of the fund, judge whether it has reached a peak of the fund's rise. If it has reached the peak according to history, it is best not to add positions at this time.
3. Look at the rising trend of the fund, that is, the trend change of the theme. If the upward trend is obvious, you can consider adding positions.
When the fund rises, the net value of the fund is higher, which leads to higher subscription cost and greater risk, so generally speaking, it is not appropriate to add positions when the fund rises. If you need to add positions, you can add positions in a decreasing way in batches, such as the first 500, the second 400 and the third 300, so that the decreasing amount can reduce our risk to some extent.
What does the 5-day moving average mean?
The 5-day moving average refers to the average transaction price or index of a stock for 5 days, which corresponds to the 5-day moving average of the stock price and the 5-day moving average of the index (5MA). The moving average is actually the abbreviation of the moving average index, which is an important indicator to reflect the price trend. The high point and low point formed by trend operation are pressure point and support point respectively, which has important reference significance for investors' trading points.
The 5-day moving average is an important trend line of the short-term trend of the stock market. The stock price is above the 5-day moving average in the short term.
If there are many, you can buy (don't chase high), and the stock price is below the 5-day moving average in the short term, so you can follow. When the 5-day moving average of a stock crosses the golden fork formed by the long-term moving average, it is a buying signal, and when the long-term moving average of a stock crosses the dead fork formed by the 5-day moving average, it is a selling signal.