The fund is a risky investment and does not guarantee the principal and interest. When the fund plunged, most people felt heavy and wanted to cover their positions, but they were afraid that the fund would fall again. So should funds fall sharply to cover their positions? Will it rise again after the plunge?

Should the fund cover its position when it falls sharply?

First of all, it is necessary to analyze the reasons for the fund's plunge. If there is nothing wrong with the fund itself, the market is falling, most funds are falling, and the past performance of the fund manager and the fund is good, then you can consider covering the position, which will increase the risk. The fund fell and lost more.

However, if the fund subsequently rises, the cost of holding positions will be reduced and it can be earned back later. You only need to have the ability to take risks to make up the position, because the future increase of the fund is unpredictable, and no one knows what will happen. So when buying a fund, it is best to buy it with spare money, so that even if there is a loss, there will be no great psychological burden.

Did the foundation soar after the plunge?

After the fund plummets, the probability of rising in the future is high, but it does not mean that it will skyrocket immediately. The market outlook may be sideways for a period of time, or it may slow down for a period of time, or it may slow up. Investors should analyze the trend of the market and the trend of the underlying stocks.

The rise and fall of the fund and the trend of the market are inseparable from the stocks opened for bids. Investors should at least learn to analyze the pressure level and support level when buying funds, so as to respond in time when the fund falls sharply.