In the process of fund investment, there are many investment misunderstandings that investors often step on, resulting in losses. We can understand these investment misunderstandings and avoid stepping on the pit.
Avoid selling funds as soon as they fall.
Some investors are very afraid of losses. Once they encounter a falling market, they will be very anxious to redeem the fund. It is normal for the market to fluctuate, and it is normal to have ups and downs. When the market falls, there is no urgent redemption, and the loss is temporary. Analyze the reasons for the market decline and make rational choices.
Beaman made money and redeemed it.
Once the fund starts to make a small profit, it will be redeemed. This is also a fear that hard-won profits will be refunded. If you value a fund from the beginning, holding it for a long time is king.
Don't make money too slowly.
Most investors want to make quick money. When the fund's ups and downs are relatively small, making money is too slow, and the willingness to continue holding will decline. In addition, the frequent explosions of funds with various performances on various platforms are very eye-catching, and it is easy to replace existing funds and frequently switch funds. The income from explosions is often difficult to sustain, which also increases transaction costs for no reason.
Avoid frequent operations.
Too concerned about the market, I always want to do something to earn some income. We call this kind of psychology "character effect". If a fund makes money, it means that it is a good fund and we can continue to hold it. If the fund loses money, it must first understand why it loses money, wait and see for a while, and then make a final decision after seeing the adjustment and strategy of the fund manager.