Is it necessary to stop the loss if the fund loses 20%?

When buying funds, losses are relatively normal. Investors who buy funds when the market is not good may lose 20% in a year, so it is necessary to stop the fund from losing 20%. Is it a loss? The editor below will tell you whether it is necessary to stop the loss if the fund loses 20%. It is of great benefit to everyone. Let’s take a look.

Is it necessary to stop the loss if the fund loses 20%?

Is it necessary to stop the loss if the fund loses 20%? You can analyze it based on your own situation. First, you can bear the risk. Ability, that is, whether you can accept the possibility of more fund losses, because if you continue to hold the fund, there is the possibility of another decline, but if the market is better, it is possible to make money back bit by bit.

So risk and return are relative. If you can bear the risk and are optimistic about this fund, you can continue to hold it. If you can't bear the risk, it will be better to stop the loss and redeem it in time. better.

Funds are not deposits. It does not mean that the longer you hold them, the more money you will make. If you hold a fund when the market is not good, you will lose more and more, so when buying funds When doing so, be cautious and don’t blindly follow the trend.

How much fund loss should be stopped?

Because each investor’s tolerance is different, the amount of loss required to stop the loss will also be different. Everyone should decide according to their own needs. It is formulated based on the situation. Generally speaking, when the fund loses between 5% and 15%, it is necessary to consider stopping the loss. The fund cannot be allowed to continue to lose money, otherwise it will suffer heavy losses.

Generally, when the fund's losses become more serious, it will be more difficult to recover the capital. Therefore, after stopping the loss of the fund in a timely manner, you can make money back by changing to a new fund. However, When buying a new fund, you should also be aware that funds are risky. If the market goes bad, you will lose your principal.

So when buying, you can buy in batches, which can reduce the risk to a certain extent. If you buy it all at once, the subsequent fund will suffer losses. The loss may be relatively large.

In addition, if investors are optimistic about this loss-making fund, they can speed up the return of capital by adding positions. Adding positions means buying the fund, buying when the fund falls. It is possible to reduce the cost of buying and make money back when the fund rises. However, if the fund continues to fall, you may lose your principal, so you should operate with caution.

Catch stocks with continuous daily limit

In the mid-line stock selection skills, 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 of the market index (250-day line) ) and the half-year line (120-day line). If the trend is above the annual line and the half-year line, it means that it is not a bear market currently. 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 stock theme. 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 has increased by more than 6%; it must be "increased"; the greater the increase, 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.