In the process of investing in funds, there will be a situation like this. When we see a hot fund appearing on the market, we also want to get a share of the quick profits. Without thinking too much, we quickly join. I bought the car, but I didn’t expect that I successfully bought it at a high position, neither advancing nor retreating. It's like a curse in the investment process, whatever you buy will go down, and whatever you sell will go up.

How should you deal with the situation of buying at a high position?

1. Cut the meat decisively

This method is a no-brainer and a last resort. When you are not optimistic, you should stop the loss decisively and promptly. Running fast can reduce losses, running slowly can reduce losses. If it is, it may be sold at a low price.

However, during the investment process of the fund, we have always emphasized that we are optimistic about the long-term returns of the fund. The prerequisite for decisive cuts is that the overall performance of the fund is no longer promising, or the fluctuations caused by the fund It has reached the point where you cannot sleep well at night. If it is only caused by short-term market fluctuations, we should wait and see and take other measures.

2. Fund conversion

In the process of investment, few people take the measure of fund conversion. If we are no longer optimistic about the fund, we can start another fund through fund conversion. Fund switching can help us save transaction costs such as redemption fees and fund repurchase fees. Moreover, fund switching can shorten the confirmation time of fund transactions. For another promising fund, we can purchase it in the fastest way. car.

3. Continue to hold

Ignore short-term performance fluctuations, continue to hold, and wait until the fund returns its capital. I firmly believe that time is the best medicine, as long as you do not sell the fund , it is a floating loss, and it will naturally recover its capital over time. Continue to hold it until it recovers its capital. This is a way, but it is not the best way, and the process may be longer. If you can regard it as forced savings, no Too much loss in the short term is also a way of dealing with it. The market is volatile. Just after this bull market has passed, there will always be the next bull market.

4. Increase your position with fixed investment

If the fund you hold was bought at a high level and then started to fall. This decline is caused by market fluctuations, then you can choose to increase your position with fixed investment. When the position is low, it is the time to increase the position. At this time, you can buy more fund shares at a lower cost, which can effectively spread the cost. In this way, when the fund starts to rise, you don’t have to wait for the fund to rise back to its original level. At the position, you can already recover your capital. When the fund rises to the original position, you have already started to make money. This is the famous smile curve of fixed investment.

5. Establish an investment portfolio

This operation is what we need to do when we start investing. Investing in the market in the form of product portfolios can make the difference between different products Balance each other. When one sector is falling, other sectors may be rising, which can make up for losses. The most important thing in building an investment portfolio is to reduce correlation. You can select funds from different fund categories, different fund companies, etc. The lower the correlation, the more obvious the effect of risk diversification.