Will the principal be lost if the fund keeps falling?

When some investors buy a fund, the fund always rises, but the fund always falls more and rises less. They are troubled and don’t want to look at it, so the fund keeps falling. What will happen? Below, the editor will explain whether the principal will be lost if the fund keeps falling. I hope you like it.

What will happen if the fund keeps falling?

If the fund keeps falling, it may suffer heavy losses, so when the fund keeps falling, you should be careful, after all, it is your own Money, making money is not easy. When buying funds, you basically have to pay attention to it every day. You don't need to keep an eye on the market like stocks, but you have to check it several times a day.

If the fund always falls more and rises less, and the overall situation is that it keeps falling, you cannot let the fund keep falling. You must set a stop loss point, stop the loss in time, and wait for the fund market to compare. When times are good, don't be reluctant to enter the market again. Only by giving up can you gain. Some investors lose their minds and keep adding positions in the hope of making money back quickly, which leads to an irreversible loss situation.

Will the principal be lost if the fund keeps falling?

Whether the principal will be lost if the fund keeps falling depends on the situation. Generally, the principal will be lost. The situation is relatively rare, because when the fund losses reach a certain level, the fund will be liquidated. When the fund is liquidated, the remaining shares will be distributed to investors. However, if the losses reach a situation where the fund is liquidated, it will basically be liquidated. There is not much money left, so when the fund loses money, you cannot let the fund continue to lose money, you must learn to stop the loss yourself.

What are the techniques for retail investors to cover their positions?

1. Cover their positions based on technical indicators. Retail investors can cover positions based on some specific technical indicators. For example, when the stock price is supported by the 60-day moving average and rebounds upward, retail investors can consider buying the stock in an appropriate amount, or when individual stocks show some buying signals on the K-line chart. For example, Venus performs cover-up operations.

2. Cover positions according to market conditions. When the market has bottomed out after a long period of decline, and the market is stable and there are signs of rising, retail investors can consider an appropriate amount of cover-up operations, or when there is major good news for individual stocks, retail investors can take the opportunity to buy some.

Reminder: The stock market is risky, so be cautious when entering the market!