When buying a fund, many small partners should have experienced losses, because the fund itself has risks, so what should I do if the fund buys too much and falls? What should I do if the fund I bought keeps falling? What should I do if the fund you bought continues to fall? I hope you like it.
What if the fund falls more and more?
Many old citizens lost money because they bought when the fund lost money, and the fund was still falling, so there was a situation in which the fund bought more and fell less. Theoretically speaking, adding positions when the fund falls can reduce the buying cost, but this is only for promising excellent funds, and it is likely to rise back later.
Then, if the fund's previous increase is too large, or the position is too high, the fund retreats relatively large, and the fund is still falling when it is falling, then there will be losses. Then, if you choose a bad fund, the foundation will fall badly. For example, if the fund falls by 40% a year, it will be very difficult to recover its capital.
Because when the fund falls by 40%, it doesn't mean that it will be able to return to its capital if it rises by 40%, but it needs a bigger increase to return to its capital. The calculation formula for increasing the cost back is: increase the cost back range =1(1-loss range)-1=1(1-440).
What if the fund falls more and more?
Therefore, when the fund is still losing money after buying, and it is a continuous loss situation, and it has fallen for a period of time without signs of rebound, and the market situation is relatively poor, it is necessary to set a stop loss point, and then keep the remaining funds to avoid greater losses.
Many investors just want to earn their money back quickly after losing money, and blindly adding positions may aggravate the loss. Therefore, when adding positions, funds need to be cautious. They must analyze the funds and feel that there is room for the funds to increase their positions, otherwise they will redeem the stop loss in time.
When buying a fund, you should know your ability to take risks. If your risk-taking ability is not strong, don't consider higher-risk fund types, and give priority to lower-risk types. For example, the risk of money fund is very small, the possibility of loss of money fund principal is very small, and the fund fluctuation is relatively small, which is suitable for conservative investors.
That's how experts usually operate.
Moving average stop loss method: the most commonly used stop loss method for retail investors is to stop loss by moving average. This is very simple. Take the breakthrough of a moving average as the opening point, and the breakthrough of a moving average as the stop point.
Fixed stop-loss stop-loss method: This fixed stop-loss and profit-taking method can also be operated in conjunction with the moving average system. Generally, the fixed stop loss and profit-taking position should be set reasonably. For example, yesterday's opening price, yesterday's closing price, today's opening price, today's highest price, today's lowest price, or the previous highest price and lowest price. Can be used as a reference position for stop loss and take profit.
Time stop loss method: this method mainly depends on luck, good luck or profit, and bad luck is the object of stop loss. Simply analyze the disk and decide whether it is empty or not. After entering the market for 5 minutes or a few minutes, whether it is profit or loss, the position will be closed immediately. This kind of operation is mainly based on ultra-short-term operation, but it still requires a higher sense of the spot. After all, if you have a strong sense of the disk, you will have a great chance to profit from entering the market. This method is just a way to control your inner rhythm over time.