Why are funds taboo against chasing ups and downs?

Many investors want to make a little money when buying funds. When buying funds, they are more taboo about chasing ups and downs. So why are funds taboo about chasing ups and downs? Below, the editor will tell you why funds are taboo about chasing ups and downs.

Let's take a look together, I hope it can bring reference.

Why is it taboo for funds to chase ups and downs? Because if a fund chases ups and downs, most investors will be in a state of losing money. When they see the fund rising, they become very optimistic about the fund and want to wait.

Buy and see if the fund will rise. When the fund has risen for a period of time, investors will feel that the fund is good and can continue to rise for such a long time, so they will buy the fund. If they buy the fund at this time

, the fund is at a relatively high position, and the fund may experience a retracement.

Because funds are volatile products, when the fund rises too much, there will be a fund retracement. At this time, the fund will start to fall. At first, investors may think that if they wait a little longer, it will rise, but they know that they will lose a lot of money.

In serious cases, when the fund is redeemed at a relatively low position, this situation is called chasing the rise and killing the fall. Therefore, when buying a fund, it is taboo to chase the rise and kill the fall, because investors will lose money.

Is it good for a fund to chase the rise and kill the fall? The risk of a fund chasing the rise and the fall is very high, and it is possible to lose the principal. Therefore, under normal circumstances, it is not recommended for funds to chase the rise and kill the fall. When buying and selling funds

At this time, you need to analyze the market situation of the fund. Buying when the fund falls can reduce the cost of buying.

Just when buying, you must choose a better fund and buy at a low price. When the fund reaches a certain profit, you must learn to take profit and redeem the fund, because the essence of buying and selling funds is to earn the price difference, and

This does not mean that the longer the holding time, the better.

Among the mid-line stock selection techniques for stocks that have been trading at the daily limit, if you want to make a mid- to long-term layout, you have to look at the current market situation. You can refer to the annual line (250-day line) and half-year line (120-day line) of the market index. If the trend is at the annual line

and above the half-year line, that means it is not a bear market at the moment.

In the face of national policies and the overall decline of the stock market, investors should not take chances to rush for a rebound or choose to buy, but should take advantage of the trend to clear positions and wait and see.

If the stock market rises sharply, you should enter with the trend and hold shares in the medium term.

Midline stock selection should be comprehensively analyzed from six aspects: K-line shape, technical indicators, relative price, company fundamentals, market trend, and the theme of the stock.

Some stocks with high P/E ratios and prices much higher than their intrinsic value should be abandoned.

As for how to catch stocks with continuous daily limit? The starting stock price rises by more than 6%; you must "increase the volume"; the greater the rise, the stronger the trend and the more favorable it is.

Among the key conditions for the daily limit, it is best to open higher by 2 to 3 points and open lower by no more than 2 points; do not increase the volume during the decline, otherwise there will be suspicion of shipments; the closing price should close near yesterday's closing price.

It is best to form a gap.