Everything is a probability, and everything is a cycle. If you want to win, you must use the correct posture to "lay flat", invest for the long term, and never give up. If you want to truly "chase the rise and kill the fall", you must follow the trend.
Unity of knowledge and action.
The market is volatile. When buying a fund, should you stay flat or chase the rise and kill the fall?
According to past data, lying flat and chasing ups and downs are both difficult actions, and the outcome depends on what kind of strategy you use to backtest. After all, there are certain similarities in market rules, but not all are correct.
Not entirely wrong.
Whether you choose to lie flat or chase the rise and kill the fall, the backtest results of different strategies are different. For example, if you set the time period of lying flat to the last 20 years, investing in liquor and consumption will still be the big winners.
Set to the last year, investing in large-cycle categories such as coal ETFs, steel ETFs, new energy vehicle ETFs, new energy stock funds, and new energy hybrid funds are the big winners.
I am a relatively materialist and like to look at facts and truth objectively.
Of course, value investing does not mean holding a full position for a long time. Reasonable stop-profit and stop-loss measures are the first step in rational investment.
Most people are ordinary investors, and everyone’s hard-earned money has a lifespan. Unless you can be sure that you will not use the money in the next 3-5 years, 10 years, or even 20 years, then you can put it aside.
For long-term investment, there is no need to stop profits and losses within 10 to 20 years. The premise is to choose the right direction, the right active fund, and make long-term investments.
The 80-20 rule is an investment fund that has always existed. When it gets harder and harder, there are only two options, either take the initiative, or choose to wait and trade time for space.
Some people say that E Fund Blue Chip Selection cannot run because it is too big. This statement is wrong. Just like I remember that liquor fell miserably from 2012 to 2013, and the voice in the market at that time is still fresh in my mind.
New, all kinds of negative news, the most typical one is that some people think that the market value of Kweichow Moutai is too high and cannot survive. Looking back now, it is just a speck of dust.
I often say that people who dare to invest for the long term must be courageous, adventurous and suitable for big things.
It’s not that it can’t run because of its large market capitalization, but because the strategy of E Fund Blue Chip Select is to focus on investing in liquor consumption. If liquor consumption rises, what else can’t run? One trillion Moutai, even if it reaches 10 trillion
It's not impossible. It seems that most people thought that the market value of 100 billion was extremely overvalued back then. The fact is that now it can be achieved with a market value of over 100 billion in just a few months.
The height of your knowledge determines the depth of your pocket in the future. The market will exist for decades. There are very few people who make money, and even fewer people who make big money. Think more about how to make money, and how to make big money. This is a fund.
Investors should think deeply about this issue.
I know that at certain times, most people are eager to make profits but are unwilling to suffer losses, because they do not believe the facts and are unwilling to see the truth. They will be ashamed and dare not admit their mistakes when they make mistakes. They are ordinary people.
The instinct of human beings is to learn to be fickle and disguise themselves, but the fact is to recognize their own mistakes, shortcomings, weaknesses, and ignorance. The result is a terrible blood loss and vicious cycle.
Therefore, why do most people in the market always make no money and only a few people make a lot of money? Whether it is stock trading or investment funds, the principle is the same.
Following the trend and chasing the rise and killing the fall is in line with the objective facts. Investors who can follow the trend are as pitiful as those who can wait and win. So what are most people doing?
Investing in funds is also a professional skill. Most people are not suitable to make a living from stock trading or fund speculation to support their families. Instead, working as a trader in a fund company will be much more comfortable and the pressure will be less than that of individual investors. The money used belongs to others.
No matter how big the retracement is, we can withstand it, and no matter how high the increase is, we can still hold it.
Only when you have an open mind can you suddenly become enlightened. You often worry about gains and losses. You will get furious after losing a few points, and you will be in pain after falling halfway. This is a fatal problem for ordinary people.
Whether one can withstand psychological pressure depends on the fact of fluctuations.
In investment funds, you can only win if you can afford to lose. This is a long-term battle.
Risk warning: The views mentioned in this article only represent personal opinions, and the subject matter involved is not recommended. Buy and sell based on this at your own risk.