It is normal to buy a fund and lose money. When investors buy a fund in a bad market, it is possible to lose 20% a year. Is it necessary to stop the loss of 20% of the fund? How much does the fund have to lose to stop loss? The following small series brings when the fund should stop loss. Let's take a look at it together, hoping to bring some reference.
When should the fund stop loss?
Fund stop loss means that investors set a predetermined price or stop loss point in order to avoid further losses. Once the net value of the fund reaches or falls below this point, investors will choose to sell or redeem the fund shares.
The timing of stop loss varies according to personal preference and market conditions, but the following situations may trigger the consideration of stop loss:
Target realization or risk change: when the target of fund investment has been realized or the market risk has changed dramatically, investors can consider stop loss. For example, when the fund reaches the preset profit target, investors can choose to sell part or all of the fund.
Major events or adverse news: the occurrence of major events or adverse news may have a significant impact on the market, resulting in a decline in the net value of the fund. In this case, investors can consider making a stop loss to avoid further losses.
Loss beyond tolerance: If the loss of the fund has exceeded its risk tolerance or the degree of loss specified in the investment plan, investors can choose stop loss to limit further losses.
The risks of fund operation mainly include
Market risk: the impact of market fluctuation on the value of funds is one of the main risks. Market risk involves industry cycle, economic changes, policy adjustments and other factors, which may lead to a decline in the fund's net value.
Credit risk: the assets invested by the fund, such as bonds and trust products, have the risk of credit default. If the bond issuer fails to pay the principal and interest on time, the net value of the fund may decrease.
Liquidity risk: the assets invested by the fund may be illiquid, that is, the assets cannot be realized quickly. When there is a large redemption of the fund or the market liquidity is insufficient, it may affect the net value and redemption ability of the fund.
Uncertainty risk: Fund investment is affected by macroeconomic, policy, geopolitical and other uncertain factors. Changes in these factors may have a significant impact on the net value of the fund.
Managing risks: The investment decision-making ability, risk control ability of fund managers and the operation ability of fund companies have an important impact on the performance and risks of funds.
Is it necessary to stop the loss of 20% of the fund?
Is it necessary to stop the loss of 20% of the fund? You can analyze it from your own situation. The first is your risk tolerance, that is, can you accept the possibility of more fund losses, because if you continue to hold the fund, there is still the possibility of falling again, but if the market is better, it is possible to earn it back bit by bit.
Therefore, risks and benefits are relative. If you can take risks and have value to the fund, you can continue to hold it. If you can't take the risk, you'd better stop loss and redeem it in time.
Funds are not deposits. The longer they are held, the more money they earn. If you hold funds when the market is bad, you will lose more and more. So be careful when buying funds, and don't blindly follow suit.
How much does the fund have to lose to stop loss?
Because each investor's tolerance is different, the amount of loss for stop loss will also be different. Everyone should make it according to their own situation. Generally speaking, when the fund's loss is between 5%- 15%, stop loss should be considered. We can't let the fund keep losing money, otherwise it will suffer heavy losses.
The more losses a general fund has, the more difficult it is to recover its principal. Therefore, after timely stop loss, it can be earned by the new fund. However, when buying a new fund, we should also pay attention to the risks of the fund. In a bad market, it will also lose money to the principal.
Therefore, when purchasing, it can be purchased in batches, which can reduce its risk to a certain extent. If you buy at one time, the subsequent foundation will lose money, and the loss may be relatively large.
In addition, if investors are optimistic about this loss-making fund, they can accelerate the return of funds by adding positions, that is, buying the fund. Buying when the fund falls can reduce the buying cost and earn it back when the fund rises, but if the fund falls later, it may lose its principal, so be cautious.
Seize the stocks with continuous daily limit.
In the mid-line stock picking skills, if you want to make a medium-long line layout, you must look at the current market situation. You can refer to the annual line (250 antennas) and semi-annual line (120 antennas) of the market index. If the trend is above the annual line and the semi-annual line, it means that it is not a bear market at present. In the face of national policies, investors should not be lucky enough to grab the rebound or choose to buy people, but should wait and see to clear their positions. If the stock market rises sharply, it is necessary to follow the trend and hold shares in the medium term.
Mid-line stock selection should be comprehensively analyzed from six aspects: K-line shape, technical index, relative price, company fundamentals, market trend and stock theme. We should give up some stocks with high P/E ratio and prices much higher than their intrinsic values.
As for how to seize the stocks with continuous daily limit? The initial share price rose by more than 6%; Must be "heavy"; The greater the increase, the stronger the trend and the more favorable it is. Among the key conditions of daily limit, the opening price is 2-3 points higher and the opening price is not more than 2 points lower. The decline process cannot be heavy, and the heavy volume is suspected of shipping; The closing price is near yesterday's closing price, so it is best not to form a gap.