What are the reasons for not recommending frequent fund trading?

when buying and selling funds, some investors like to buy and sell funds frequently, and always say that it is not recommended to buy and sell funds frequently, so why not recommend buying and selling funds frequently? What is the reason why the following small series does not recommend frequent trading of funds? I hope you like it.

reason one: the handling fee is high

The frequent trading of funds is subject to handling fee every time. However, if you hold funds for a long time, some funds will be exempted from handling fee when they arrive at a certain time, so it is more cost-effective to hold funds for a long time, and the handling fee for redeeming funds for a short time is generally higher, while the frequent trading of funds requires more handling fees.

Reason 2: Long-term holding of funds can spread risks

You should know that funds are volatile products. Short-term holding of funds has relatively large fluctuations and cannot effectively spread its risks. Frequent trading of funds has relatively large risks, while long-term holding of funds can reduce the risks of funds.

reason 3: holding funds for a long time is more worry-free and labor-saving.

It is very laborious to buy and sell funds frequently. You need to look at funds frequently, and you may not make money. When you may redeem them, you will lose money, which is not cost-effective. Therefore, it is generally not recommended to buy and sell funds frequently. Funds are more suitable for long-term holding.

In addition, if you buy and sell funds frequently, it is easy to buy and sell at a high price, which is not cost-effective and may cause heavy losses. Therefore, when you buy funds, you should also consider your ability to bear risks. If you can't bear high risks, don't choose high-risk fund types.

How do retail investors reasonably use

The 5-day moving average refers to the average transaction price or index of a stock for 5 days, which corresponds to the 5-day moving average of the stock price and the 5-day moving average of the index (5MA). The moving average is actually the abbreviation of the moving average index, which is an important indicator reflecting the price trend. The high and low points formed by the trend operation are pressure points and support points respectively, which has important reference significance for investors' trading points.

an important trend line of the short-term trend of the 5-day moving average stock market, the stock price above the 5-day moving average is bullish in the short term, so you can buy (don't chase after the high), and the stock price below the 5-day moving average is bearish in the short term, so you can follow it. When the stock's 5-day moving average crosses the golden fork formed by the long-term moving average, it is a buying signal, and when the stock's long-term moving average crosses the dead fork formed by the 5-day moving average, it is a selling signal.