during the continuous decline of the fund, every investor wants to return to the capital quickly, so in the initial stage of market adjustment, he will greatly increase his position to reduce the cost, and want to return to the capital as quickly as possible to make money. However, the real adjustment of the market is often long and painful. If this is done rashly, in the face of the continuous adjustment of the market, most of the previous funds are added halfway up the mountain, resulting in no real low chips, which will be trapped for a long time, even if the market rebounds and rises. It doesn't earn much at all, just like the recent adjustment of the technology sector is close to 4%. Many people estimate that most positions were added in the July crash, but the low position in September and October did not have funds or dared to add positions, which did not effectively reduce the loss rate. Therefore, the low absorption after the fund crash also needs certain strategies.
It's not the best choice for the fund to lie down after the plunge. For example, when we invest in 1 yuan, we suffer a 5% loss. At this time, the principal is only 5 yuan. If we lie down, we need to rise 1% in the position after the plunge before we can return to our capital. This difficulty can be imagined. Even if we persist in making a profit, we will miss this wave of market and waste time. If we increase our position in 5 yuan and maintain our position in 1 yuan after a 5% drop, your average cost is 75 yuan, and you can return to your capital with a 5% increase from this position, and your cost price after returning to your capital is lower than when you first bought it, so when the fund rises back to its original position in 1 yuan, you can still earn more, which is why you can't lie down after a big fall.
similarly, it is not recommended to cut the meat and leave the market after the fund plummets. If we buy index funds at a high level and just face market adjustment, there may be a drop of more than 1 points in just a few days. Because there is no hope of rebound, many investors may be tempted to cut the meat and leave the market because of the huge loss of the principal. This is extremely unwise. We all know that as long as the bear market is not in a unilateral downward trend for a long time, there will be an increase. The position where we leave the market may be the recent low position. After leaving the market, we will miss the rising market in the market. Some people may want to leave the market first and wait for the market trend to improve before entering again. I want to tell you that the market's ups and downs are very short, and most of them are in a volatile market, so it is extremely difficult to bargain-hunting and escape from the top. Only by reasonably absorbing in a falling market and firmly holding in a volatile market can we grasp the trend of a sharp rise in the market.
Through the financial tests of fund management in recent years, I think the most reasonable way is to buy low-level chips in batches to reduce the loss rate and wait for the market to rebound and return to profit quickly. Take the sharp drop in the market in March-April this year, the index dropped from around 3,1 to the lowest point of 2,6. Many people feel that the market will continue to fall in the face of the unfavorable environment of the melting of US stocks and the serious epidemic situation at home and abroad, so many people miss the opportunity to increase their positions. After the market breaks through 3, points in June-July this year, they will chase high and enter the market, and the quilt cover will be serious. In fact, as long as you have low-sucking purchases at the low level in March and April this year, In any case, this year will be profitable. In the face of the fund crash and the continuous adjustment of the market, we can't change the market. We can only choose to change our positions. The lower the position, the higher the position. There is no reason to wait until the market comes.
Recently, the market has been adjusted from 3,4 points to around 3,2 points again. Everyone thinks that the market shrinkage is depressed, the external environment is unstable, and the bloodsucking effect of the listing of ants makes it possible to continue to fall. I want to say that this position is not high, and the support of 3,2 points has been tested many times, and the technology sectors such as semiconductor chips have been greatly adjusted, so I think it is a good low-sucking position. If I'm worried so much, how can I grasp the opportunity of market pull-up in the future? So this time, I will continue to choose low-chip, and then insist on waiting for the arrival of the market. Let's wait and see next week.