What are the reasons why funds fall when you buy them and rise when you sell them? Are there rules for the rise and fall of funds? Funds have different classifications. The risk of fund investment mainly comes from the fund’s stock position. The higher the stock position, the greater the investment risk. Generally speaking, the volatility of stock funds and hybrid funds is The risk factor is relatively high. During the trading process, we may find that the funds you are optimistic about often fall when you buy them and rise when you sell them, which is very distressing. In fact, this is not because you are unlucky, but because you are good at trading. Some problems have arisen. What are the main reasons for this problem? The volatility of the fund you buy is relatively high. Fluctuations in the net value of the fund are the norm in the market. No fund keeps rising or falling in a straight line. They all move forward in turbulence. If the fund you buy has a higher volatility and you are used to frequent transactions, naturally , the greater the probability that it will fall as soon as you buy and rise as soon as you sell. The volatility of the fund mainly comes from the volatility of the stock market, and the impact of stock market fluctuations on the fund mainly depends on the fund's stock positions. The higher it is, the greater the impact. Blindly follow the trend of trading. If you follow the footsteps of the large group, the probability of making mistakes will be reduced. This seems to be the common sense of many people. This is also the herd effect. It’s also the herd mentality of the masses. And following the trend in investment does not seem to be a wise choice. When you buy and sell a fund, you don’t have your own ideas. What others say is good. In fact, when everyone is optimistic about a fund, it has almost already risen very well. At this time, you can buy it again. If you invest, it is easy to encounter a decline in net worth, especially for industry theme funds. There is a basis for the fluctuation of funds, but there is no universal formula for the rise and fall of funds, and it cannot be accurately predicted in advance. Don't presume to know the buying and selling points of a fund through your own simple judgment. The correct approach is to establish long-term investment and diversified investment thinking, and invest rationally.