Most articles about funds are about investment ideas. There is no denying that investment ideas are ahead of schedule, but it is boring to listen to too many ideas. So, today we don't talk about ideas, but about practical operations. If the market plummets and the fund loses money, should it be cut out or continue to wait and see? Or use the low position to add positions?
This is really a difficult question to answer, because it is too difficult to predict the market, and we don't know what the market will be like tomorrow.
In the face of fund losses, the first thought that pops up in most people's minds is redemption, stop loss in time, and avoid greater losses. When the market doesn't move, it picks up and then buys. This is also the method of band operation. I want to avoid losses and beat the market through band operation. The establishment of band operation requires certain preconditions: 1, and the certainty that the market continues to fall. The best result is that in the overall downward trend, it rises slightly today, then you sell it and continue to fall tomorrow; 2. You can judge when the market picks up and when it starts to pick up, that is, you can probably judge the time node when the bear market turns into a bull market. It's too difficult to do these two things, at least not at my level. So I personally refuse band operation.
There is an old saying, "Don't cry until you see the coffin, and you won't die until you reach the Yellow River." I didn't have such a rational attitude from the beginning. I have also thought about redeeming some funds when the market is high-risk, or switching to other funds when the market is adjusted back. However, I was defeated by the market, or maybe I was not good enough. I am almost right. So I gradually realized the reality, refused band operation, and adhered to the discipline of investment. The current income is the superposition of previous losses, and growth needs to pay a price. The old fund is also a novice who grew up through the lessons of money.
Now, in the face of the fund losses caused by the market decline, I can basically face it calmly, do nothing, and even consider gradually adding positions.
Of course, it has something to do with your risk tolerance. Can't completely ignore the psychological endurance to operate. Mentality always affects and dominates your operation. I am in a good state of mind, because I know I can afford the money, and the loss will not shake the foundation of my life.
Furthermore, the decline of the market is favorable in the long run, which provides us with the opportunity to increase our positions, because we are optimistic about China's economy and the future development of China's finance.