Losses are due to inexperience in choosing 6 trading opportunities and fund varieties, which does not mean that buying funds is wrong.
This year's stock market pattern is dominated by shocks, making money difficult. I suggest redeeming the stop loss step by step on rallies instead of one-off redemption.
Two keys to fund profit and loss
In recent years, funds have been favored by investors more and more, and the number is increasing day by day. However, due to their busy work, most citizens have little time and energy to familiarize themselves with the relevant knowledge and operational skills of fund investment, resulting in poor returns or even losses. In fact, investment funds are much simpler than stock trading, and the key to profit and loss lies in four words: timing and base selection.
I. Timing
Choosing the right buying (subscription) selling (redemption) opportunity is the most important key to the fund's profit and loss. The ideal buying point is that the stock index is at the bottom of the stage, but because it is very difficult to predict the rise and fall of the short-term market, even experts can make accurate judgments. Every day on the internet is ups and downs, which makes people confused and at a loss. In fact, it is not necessary and impossible to buy at the bottom, just ask to buy near the bottom. Although it is difficult to predict the rise and fall of the stock market in the short term, the trend can still be grasped. As long as you follow the trend and buy at a relatively low point, it is the correct operation. "There is no stock market that only falls but does not rise". If it falls sharply, there will be a retaliatory rebound, which is usually the time to buy. There is a saying in the stock market called "the market fell out", which is quite reasonable. On the contrary, even if the price rises sharply, there will be a callback, and you must not chase the rise, otherwise you may be caught.
In the choice of redemption opportunity, there have been two strategies: "long-term holding" and "band operation". In fact, these two operations are not contradictory, let alone mutually exclusive. It is unwise to stick to any operation method, so we should combine them organically, complement each other and be flexible. If the expected return has been achieved and the stock market is about to enter the downward channel, it should be redeemed in time and profit-taking. If the stock market crashes after buying, redemption can avoid loss expansion according to the pre-set "stop loss point". Under normal circumstances, the fund should not go in and out frequently, so as not to waste the handling fee and lose the income brought by the rise.
If you want to grasp the opportunity correctly, you must know the fundamentals as much as possible, get the relevant information of the stock market in time, be diligent in analysis and thinking, and constantly improve your ability to judge the market outlook.
Two. Selection of fund types
Selecting the base is another key to determine the income of the fund. Compared with timing, it is less difficult and more reliable.
Fund investment requires controlling risks first, and then pursuing high returns. On the premise of effectively controlling risks, invest in another one.
Some high-risk/high-return funds. Therefore, the selection of funds should first consider the scientific and reasonable combination, and then choose which specific fund. The "core-satellite" combination strategy introduced from abroad has been widely recognized by investors and widely used in actual combat, with satisfactory results.
The "core-satellite" strategy is to divide the fund portfolio into two parts, each part is composed of different funds, and one part has a large weight in the whole portfolio, which will determine the expected risk level and return level of the overall assets and is not easy to adjust, so it is called "core"; The other part is slightly lighter, and its relationship with the core combination is like a satellite orbiting a planet, so it is called a "satellite". It can adjust and change actively, actively and flexibly, and often get amazing benefits.
The choice of core funds should be considered and decided according to their own risk tolerance and willingness to take risks. Generally speaking, the older you get, the more conservative your investment should be. Young people with stable income can use equity funds as their core funds. With the growth of age, core funds gradually become hybrid funds and bond funds. Market structure is also an important basis for choosing the type of "core-satellite" fund. In a bull market, the average yield of active funds is often lower than that of passive index funds. Therefore, based on the unchangeable judgment of bull market, index fund is still the best choice to obtain the average market income. In the slow bull market, whether it is the rotation of style or the ups and downs of the stock market, it gives active funds the space to choose actively. At this time, there are often unexpected surprises when choosing equity funds. In a volatile city, bond funds may be chosen as the core, and stock funds with large fluctuations will be used as satellites to profit from the price difference. In a bear market, it is generally not suitable to buy funds.
After selecting the fund type, which specific fund should be selected. You should choose a fund with good performance managed by a fund manager with strong investment management ability. First of all, we can see the overall management ability of the fund management company, whether the number of funds under the company has won four-star or five-star funds, whether the company has won awards in fund investment management selected by authoritative organizations, and the media's evaluation of the company. These materials can be obtained in newspapers and related websites. After choosing a fund management company with strong management ability, many awards, high public evaluation and compliant operation, choose a fund with high star rating, high net growth rate and continuous leading performance. It should be noted that there are different types of funds, and only similar funds can be compared. For performance comparison, we should not simply look at the recent performance of the fund, but consider its short-term and long-term performance together. In the specific operation, we can adopt the "four-four-three-three rule" recommended by experts: the first "four": screen out the top quarter of the same type of funds for one year's fund performance ranking; The second "four": select funds with 2 years, 3 years and 5 years (the longest term is less than 3 years and 5 years) and the performance of this year is in the top quarter of the same type of funds, and the third "three": rank the products screened in the first two steps in the top third of the same type of funds within 6 months; The fourth "three": the products screened in the first three steps, the fund performance ranked in the top third of the same type of funds within three months. This is a very effective and practical method.