Why did the fund decide to stop profit and not stop loss?
(1) The reasons for profit taking are as follows
1.The periodicity of A shares is obvious: The A-share market is obvious, not rising continuously, but also falling for some time. If you still hold a profit in an ideal time, the income may face a greater possibility of shrinking.
2. Too much capital occupation: although the longer the fixed investment time, the greater the possibility of profit. However, if the time is too long, investors will invest too much money in the fund later, which will easily lead to short-term liquidity pressure.
3. Not conducive to long-term investment: fund holding is only a process, with the aim of making profits. If investors have achieved good returns, long-term persistence will not necessarily continue to grow, and even affect investors' investment confidence.
(2) The reasons for not stopping loss are as follows:
1. Avoid timing difficulties: The problem solved by the fixed investment of the fund is the timing difficulties of admission. Through long-term investment in batches, we have avoided buying hilltops at one time and reduced the risk of large losses in the short term.
2. Harvest more low-priced chips: Because of the large market fluctuation, even if it is a fixed investment, it does not rule out the possibility of short-term floating losses, but at the same time, market fluctuation can smooth out the peaks and valleys of the fund's net value, and investors also get more low-priced chips.
3. The long-term trend of the market is upward: market development is closely related to the national economy. At present, China is developing in an all-round way in technological innovation, industrial upgrading and industrial system reform. China's economy has shown full vitality and strong market foundation support in the world economy. With the support of China's growth policy and industrial transformation, this has also stimulated the market to further break through new highs.
In addition, it can be found from the chart of Shanghai Stock Exchange Index that although the index has been fluctuating, the bottom is rising, which also shows that it is effective to insist on fixed investment. In the middle of fixed investment, once investors lose money, they will cut their meat and leave the market, and the floating loss will become a real loss.