Because if you want to get an average return of 20%, this fund has to get a better return than Buffett. Unless there is a big bull market, from the average market situation in the past, investors who buy funds at one time must carefully consider the stop loss problem if they lose 20%.
Look at the fixed investment buyers. Suppose we buy a fund at 100 yuan per week. From the following figure, in fact, in the third week, the cumulative decline of the fund has been 50%. However, because investors continue to buy at low prices, they have accumulated more fund shares. Once the follow-up funds rebound, the speed of withdrawing funds will be very fast.
Stop loss for regular investment.
Investors who decide to buy also need to set a stop loss line. Generally speaking, it can be looser than one-time buyers, and the stop loss line can be around 20-30%. But if it is a bear market, the loss is about 10%. No matter what kind of buying method, investors should start to carefully consider the stop loss problem.
Of course, in addition to simple ups and downs, investors should also consider the duration of the fund's decline when considering whether it is necessary to stop losses. For funds with a long-term downward trend, investors can no longer insist on fixed investment, and can wait for the stop loss in batches when the fund rebounds.