In such a market, more and more investors begin to understand and think about "fluctuation". After all, they cheered when they rose, and no one cared about fluctuations, but when they fell, they found themselves troubled by "fluctuations." Today, Bian Xiao will share with you what to do in the face of market fluctuations, for your reference only!

Understanding fluctuation

1, fluctuation is the normal state of the market.

In the face of fluctuations, we must first realize that the market itself is composed of "ups" and "downs", so fluctuations are the normal state of the market, just like day and night. Therefore, as long as you are in the market, volatility is like a shadow, but it is easy to ignore when it goes up. For example, 2020 is a good year to make money, but the Shanghai Composite Index also fell 1 12 days in 243 trading days, accounting for nearly 50%. Unexpected?

So fluctuations always exist, but when we fall, our emotions will amplify the impact of fluctuations, and "heartbeat" will affect our perception of "fluctuations". Emotion is also one of the important factors that affect our profitability in the market. Buffett's teacher Graham once pointed out: No matter how successful you are in math and finance, if you can't control your emotions, you can't make a profit in the investment process.

2. Fluctuation is one of the sources of income.

Imagine a stock today 10 yuan, tomorrow 10 yuan and the day after tomorrow 10 yuan, and there is no fluctuation, would you like to buy it? Certainly not, because there is no possibility of profit. Therefore, fluctuation is also one of the sources of income, and investment opportunities are often bred in fluctuation.

In fact, if you want to make money in the market, you need to understand fluctuations correctly. Buffett once said, "For real investors, the real significance of price fluctuation lies in providing investors with the opportunity to buy when the price falls below the intrinsic value after a sharp drop, and believing that the market trend will pick up; When the price rises sharply above the intrinsic value, it provides investors with the opportunity to sell, believing that the market price will return to value. At other times, if you forget about the stock market and focus on dividend income and company operations, you will do better. "

Respond to fluctuations

1, have a good attitude

Some friends participate in stock or fund investment in order to make a wave of quick money when the market is good. It is best to enter the market before the bull market starts, double the short-term income and realize the freedom of wealth. But the short-term "script" to realize wealth freedom through the stock market should only belong to a very small number of people, and a large part depends on luck. Moreover, if you realize the freedom of wealth so easily, the next time you see the market opportunity, you will probably face it with the same "speculative" mentality and way. Will luck be with you next time? You may lose all the money you earned before.

Therefore, we should face the market with the mentality of "investment", especially "long-term investment", and look down on the short-term fluctuations of the market. There was a hot post some time ago, and a netizen shared his friend's mother's investment experience. The principal of 85,000 yuan is now 6,543,800 yuan+0,390 yuan. This mother was bought in 2009, and it has been nearly 12 years now. It's not that she forgot this fund, but that it needs to be invested for a long time. According to my friend's original words, "my mother's funds are held for a long time."

The stock market is not an ATM, and there will be no pie in the sky. In the face of market fluctuations, we should maintain a good attitude and not always think about getting rich in the short term. A normal mind combined with long-term investment is the correct and simple way for ordinary people to realize asset appreciation.

Step 2: Good method

Maybe you will say, "I know it's normal, but it's not easy to do it." Indeed, it is difficult for anyone to fight against human nature. In the process of investment, everyone is inevitably affected by market fluctuations, especially the short-term rapid rise and fall. Investment is a kind of practice, and it is really not easy to suppress nature in the face of fluctuations.

So under such circumstances, we need to find good ways to help ourselves cope with fluctuations, such as fixed investment.

The essence of fixed investment is to use market fluctuations to strive for higher returns. Because the fixed investment funds are entered in batches, if the market falls, the amount invested in a single period can buy more fund shares. Moreover, fixed investment can not only buy more at a low level, but also buy less at a high level, reducing the overall investment risk. Moreover, the automatic deduction of fixed investment every month, to a certain extent, "liberated" us from market sentiment, and alleviated our natural impulse to "chase up and kill down". It not only uses fluctuations to gain more shares, but also fights against human greed and fear, helping us to further increase our income. Is it killing two birds with one stone?

Of course, not all funds are suitable for fixed investment. For ordinary investors, it is easier to increase returns by choosing active partial stocks or index funds with large fluctuations, because the investment cost can be reduced more when the net value fluctuates greatly. Does that sound a little abstract? Then let's give an example. Suppose there are two funds-fund A and fund B, and the net performance is as follows. Obviously, fund B is more "up and down" and has greater fluctuations. Let's have a look. If you invest in fund A and fund B respectively, what is the difference in income results?

It can be found that if you invest in Fund A every month, you will get 4 16 Fund A in early April, and the total assets will rise to 520 yuan with a yield of 30%.

If you invest in Fund B every month, you will get 480 copies of Fund B, and the total assets will rise to 600 yuan with a yield of 50%. In contrast, fund B, which does have a large fluctuation in fixed investment, has higher income.

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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