This situation is often related to investors' wrong investment behavior and operating methods. There is a situation of chasing the rise and killing the fall. The main reasons are as follows:

1: Herding effect

It means that in an investment group, a single investor always acts based on the actions of other investors. Buying when the market is in and selling when others are selling is actually what we usually call the herd mentality.

Many people like to follow other people’s ideas when investing and have no opinions of their own. When others say which fund is good, they think which fund is good. However, after buying, they usually face: when you When you buy, it is almost when the price rises the best, so there is a high probability that you will face a decline after buying, and then you will redeem it if you can't stand it anymore, but at this time the fund starts to rise again.

2: Emotion-driven trading

It means frequent buying and selling operations in a short period of time.

Keep an eye on your account every day to see changes in the net value of the fund. If you find that the net value drops, you will redeem it. If you see a fund that rises, you will subscribe. Such frequent buying and selling will not only make it difficult to make money, but will also make investors lose money. There is a lot of pressure involved in investing.

Frequently staring at the account to see the rise and fall has a great impact on the mentality. The market will become restless at the slightest sign of trouble, which can easily lead to chasing the rise and killing the fall, and being unable to make rational choices.

Three: Dak effect

A cognitive bias that overestimates one's ability level and makes wrong decisions.

Investors are overconfident in their investments and believe that they have superior timing capabilities and can predict the direction of the market. But no one can be absolutely right.

A good practice is to stick to the long-term fixed investment of the fund and not to operate randomly.