The ups and downs of the market always touch people's hearts. The adjustment since the Year of the Ox has made many investors hesitate to add positions, redeem or pretend to be dead every day. So what should we novices do in this situation? Today, Bian Xiao will share with you what you should know about fluctuation, for your reference only!
How to get a better experience in the face of market fluctuations?
1, fluctuation is "common in military strategists"
From a historical point of view, if you want to reach a distant place, you must first experience wind and rain. For equity investment, enduring volatility is a process that must be experienced on the road to long-term return. Even a high-quality asset like Public Offering of Fund is bound to stumble. In the past fifteen years, the annualized income of the common stock fund index is close to 20%, and its long-term profitability is equivalent to Buffett's, but it has also experienced a decline of 1644 trading days, with the annual maximum withdrawal exceeding 2 1%.
2. Fluctuation may also be a part of long-term income.
Fluctuation is not necessarily evil, but it may also bring benefits. Between "greed" and "fear", there are often additional investment opportunities, especially those high-quality stocks that have been killed by mistake because of market panic. Fluctuations brought by market sentiment create opportunities for people with long-term value investment vision to underestimate buying, and then short-term fluctuations naturally become part of long-term gains.
3. A successful timing needs two correct decisions.
The ideal way to embrace fluctuations is to "buy low and sell high", so many people have been tirelessly looking for the best opportunity to enter the market, but the short-term timing effect is often unsatisfactory. The right timing requires doing two things at the same time-buying at a low point and selling at a high point. Even if a person's single winning rate is as high as 70%, the probability of making two consecutive decisions is 49%. Therefore, to some extent, the saying that "it is more difficult to step on the market accurately than to catch a flying knife in the air" circulating on Wall Street is true.
4. For a good fund, "killing down" is more terrible than "chasing up".
High quilt cover may be a nightmare for many people. Buying at a stage high point means paying more time costs. As investors, we should of course avoid entering the market when the market is obviously overheated, such as 20 15 (there are often obvious signals at this time). However, from a longer-term perspective, it is a good buying point for funds that keep hitting new highs. Even if they "accidentally" catch up and stay in Qingshan, the rebound will still come. If you overreact to fluctuations, "floating losses" will become "real losses".
5. How to embrace fluctuation? Consider a fixed investment.
Short-term timing is too difficult to grasp? There are two methods worth considering, one is to insist on fixed investment, and the other is to focus on the long term. Fixed investment is equivalent to using market fluctuations to automatically form an investment model of "reducing financing on rallies and increasing profits on dips" and "reducing profit share and increasing net profit" to obtain a lower average cost.
For long-term directional returns, short-term fluctuations are just a small wave on the road of equity investment. It may be more feasible to reduce the number of decisions and focus on long-term goals with high probability. Do a good job in asset allocation and hand over the investment to excellent fund managers, and time will eventually brew wine.
In fact, in the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, fund products are essentially a portfolio of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.
From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.
All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.
Tip:
First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.
Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.
Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.
Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.
Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.
Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.
Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.
Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.
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