In the process of trading, we may find that the funds you are optimistic about often fall as soon as they are bought and rise as soon as they are sold, which is very distressing. In fact, it's not that you are unlucky, but that you have some problems in the transaction. What is the main reason for this problem?
The fund bought is highly volatile.
The fluctuation of fund net value is the normal state of the market. No fund keeps going up or down in a straight line, it is always moving forward in turmoil. If you buy a fund with high volatility and are used to trading in the day, it will naturally fall as soon as you buy it, and it is more likely to rise as soon as you sell it. The fluctuation of the fund mainly comes from the fluctuation of the stock market, and the influence of the stock market fluctuation on the fund mainly depends on the stock position of the fund. The higher the position, the greater the influence.
Blindly follow suit trading
It seems that many people know that following the footsteps of large troops will reduce the probability of making mistakes, which is also a herd effect. It is also the herd mentality of the public.
It seems not a wise choice to follow suit. When buying and selling funds, they don't have their own ideas. What others say is good. In fact, when the fund is optimistic, it is almost a good time to rise. At this time, if you buy again, it is easy to encounter a decline in net worth, especially industry theme funds.
There is a basis for the fluctuation of funds, but there is no universal formula for the rise and fall of funds, so it is impossible to predict accurately in advance. Don't imagine that you can know the trading point of the fund through your own simple judgment.
The correct way is to establish the thinking of long-term investment and diversified investment, and invest rationally.