Earn a certain price difference or hold it for a long time. But in the fund market, investors are generally advised to make long-term investments, not short-term. Why? What are the disadvantages of short-term funds? So today, Bian Xiao is here to sort it out for everyone. Let's take a look!
Why don't funds recommend short-term?
1, short-term trading is more difficult.
Short-term trading requires investors to grasp the trend of the fund more accurately, otherwise it is easy for retail investors to sell the fund or buy it at a high level, that is, the fund rises after the investor sells, misses the rising market of the fund, or frequently changes positions, so that investors stay at a high level and expand losses.
2. Increase transaction costs
Investors trading funds need to charge a certain subscription fee and redemption fee. If investors buy and sell frequently, this fee will increase. At the same time, the redemption rate is related to the number of days held. The shorter the holding days, the higher the interest rate. When the holding days are less than 7 days, a high redemption fee is charged according to the standard of 1.5%, which increases the transaction cost of investors.
3. Interfered with the overall situation of investors.
Frequent trading requires investors to keep an eye on every detail of the disk, not only the market, but also the hot spots and a foundation, which will greatly distract investors' time and energy, instead of thinking about the big development direction.
The probability of making money in the short term is lower than that in the long term.
After long-term verification, in the fund market, the probability of making money in the short term is lower than that in the long term, which is one of the main reasons why many investors make money themselves.
5. Psychological stress.
Short-term trade fairs frequently face challenges and fluctuations in a short period of time. Continuous stop loss or mistakes will cause psychological pressure and affect performance.
In short, when trading a single fund, investors should not buy and sell frequently, but can adopt the method of fixed investment, that is, by constantly buying to spread the cost of holding positions and spread the risks. Among them, the fixed investment has the following skills:
1. Choose a fund with large fluctuations to make a fixed investment.
In the process of fixed investment, investors should choose funds with large volatility, such as stock funds and index funds, which are more likely to produce smile curve effect, while money funds and bond funds are less volatile and relatively stable, which is not suitable for fixed investment operation and more suitable for one-time purchase.
2. Make a fixed investment in the downward channel of the fund.
Investors should choose to make a fixed investment when the fund is in the downward channel and make a fixed investment when the fund is in the downward channel. By continuously increasing the share of positions, they can reduce their position costs, spread risks, wait for the rebound of the fund's net value and realize the smile curve effect. However, fixed investment during the fund's rise will increase their position cost and risk.
3. Stop profit and stop loss during the fixed investment process.
In the process of fixed investment, investors can set a take profit position to ensure income. However, the fixed investment of the fund is characterized by long-term, compound interest and average cost. Therefore, there is no need to set a stop loss in the process of fixed investment.
4. Choose the dividend reinvestment method.
Investors can change the dividend distribution method of fixed investment funds into dividend reinvestment, and realize the compound interest effect by increasing the holding share.