Make up positions: make a good budget for making up positions and make a reasonable plan for making up positions.
The fund can return to its original capital after falling by 40%, but it will be more difficult to return to its original capital. If you want to return your capital quickly, you should add positions when the fund withdraws, but adding positions will also increase risks. Therefore, if you don't have the ability to take risks, it is generally recommended to stop losses in time and keep the remaining funds.
It is said that the fund takes profit and does not stop loss. Is that so? In fact, there are a series of preconditions for this statement, such as the fund that suits you, the optimistic prospect, and the fund itself. If any of the above three points are not satisfied, you can stop the loss in time. After all, stopping in the wrong direction means moving forward.
1, which is beyond your risk tolerance.
In fact, before buying a fund, everyone should think clearly about this problem. For example, the maximum loss you can bear is 40%, so when the fund falls by more than 40%, it is recommended to sell the fund in time or replace it with a stable fund.
If your fund position exceeds your risk appetite, and it is a heavy position, even in Man Cang. Or holding dozens of funds without planning, it is better to cut meat and adjust positions early. Because when the market adjusts, you can't afford such a big adjustment.
2, extremely optimistic about the market outlook.
A major prerequisite for the fund to make money is to be optimistic about the stock market trend for a long time. Although funds can cross bulls and bears, the bear market falls less and the bull market rises more, but the overall trend is still similar to the broader market.
If the market is adjusted for a long time or there is no market, then the fund is likely to make no money or even lose money. So if you are bearish on the stock market for a long time, then the fund also needs to stop loss.
3. Performance can't win the market for a long time.
No fund manager can outperform the market at every stage. A-share market is relatively good. It is normal for funds with partial debts and low stock positions to underperform the broader market. For industry theme funds or funds with distinctive styles, if they are not at the forefront, they will underperform the market.
However, it has underperformed the broader market for three or four consecutive quarters, especially when the market style turns to the fund position style, and there is still no excess return. Such funds should be held carefully.
Filling position method
Prepare for 1-2 years for each replenishment. The next step is how to make a plan to cover the position.
You can add positions in a fixed proportion and strictly enforce discipline. Or according to the pyramid method, when the fund falls, with the decline of the net value, the position of each additional position is gradually increased, thus reducing the average investment cost.
For example, if the current net value of Fund A is 1.2 yuan, and the range of increasing positions we set is lightening positions 10%, then we will increase positions 1 1,000 yuan; When the net value drops by 20% to 0.96 yuan, add another 2,000 yuan; If the market outlook continues to fall, then add 3000 yuan until the net value rises.
With the decline of net worth, this method is a test for investors' cash flow. If the cash flow is sufficient, the cost of holding positions can be minimized.