1. When buying a fund, you must go low and go high.
Buying funds does not make money. First of all, you should consider whether the timing of your purchase is wrong. The so-called timing is that the fund seizes the opportunity of falling to buy. Only by buying low can we sell when the fund rises in the later period and earn more expected returns. The lower the starting price, the greater the increase in the later period, and the more obvious the expected income. No matter what kind of fund, you can always make money by buying low and selling high.
2. How to buy funds low and sell them high?
Many people's understanding of buying low and selling high is very simple and rude. They think that when they fall to the bottom, they must buy, and when they rise to the highest point, they must sell, that is to say, they pursue maximum benefits.
Bian Xiao understands this mentality, but does not support this approach. Buy low and sell high, not buy at the lowest point, but sell at the highest point. The correct way is to buy in the low price range and sell in the high price range. The advantage of this is that it can reduce the risk and make the expected return slightly certain. If it is the operation of the lowest point and the highest point, it is undoubtedly full of many uncertainties.
3. Why does your fund buy high and sell low?
There is another situation here, which is just the opposite of buying low and selling high, and that is buying high and selling low. To put it bluntly, it is not the right time to enter the market. Many times, people think that the market decline of a fund is a good time to start and want to start from a low position. However, after buying, the price went down all the way and had to be sold at a lower level, resulting in high buying and low selling. If you don't know anything about the market or even funds, Bian Xiao thinks that money funds and bond funds are more suitable for you. Otherwise, what you think of as buying low and selling high may eventually become buying high and selling low.
Summary: buying a fund really needs to be bought when it falls, but only if you know enough about the fund. Otherwise, the decline at this time, you can not tell whether the fund is at a low point or will continue to fall. There is a lot of homework to do when buying a fund. Everyone should accumulate more experience at ordinary times, and don't enter the market easily without understanding.
Introduction to popular reading:
Why does the fund fall as soon as it is bought?
Why is the fund falling?