When many fund novices buy funds, they see that a fund has a good upward trend and want to wait a little longer to see if it will rise. Then the fund has always been on an upward trend. This Sometimes I can't help but buy at the highest point, and the trend has been downward, always in a state of loss. So will the fund lose all if I buy it at the highest point and leave it alone? What should I do if I buy the fund at the highest point?
Will I lose everything if I buy the fund at the highest point and leave it alone?
Generally speaking, it will not lose everything. This possibility is very small, because the funds of the fund When the amount is lower than a certain amount, it will be liquidated and you will lose money according to the share. However, if the purchase amount is too large, it is still recommended to look more and pay attention. It is also important to stop the loss in time.
What should I do if I buy the fund at the highest point?
1. Stop the loss in time
If the fund performs poorly, for example, the fund performance continues to decline, and the position is in trouble. Or if performance has been poor, fund managers change frequently, etc., you need to stop losses in time to avoid greater losses in the future.
2. Fund fixed investment
Fund fixed investment is also one of the ways to spread investment costs. Investors with certain experience can choose manual fixed investment and flexibly decide the amount and amount of fixed investment according to market conditions. Time, for example, buy heavily when there is a big drop, buy normally when there is a small drop, and reduce or not buy when there is a big rise. When the right side of the smile curve rises, take profit and exit.
3. Fund conversion
If we are not optimistic about the selected fund and feel that the short-term redemption fee is a bit expensive, then fund conversion is a good choice. Switching can shorten the time to buy, and you can get on board as quickly as possible for promising funds, and it can also save part of the cost of re-buying.