The fluctuating market is a great test for our mentality. Many people may encounter this situation: a promising fund will go up as soon as it is sold, and will go down as soon as it is bought, with a posture of "opposition". Faced with this situation, what should we novices do? Today, Bian Xiao will share with you what to do when the fund falls when it is bought and rises when it is sold, for your reference only!

Why?

Many people want to go up as soon as they buy it, and they want to go down as soon as they sell it. This is essentially the hope of buying at the lowest point and selling at the highest point. However, logically speaking, this is an extravagant hope. Why?

Many people tend to ignore the value of investment funds and only look at the ups and downs. This is likely to be driven by emotions and make intraday trading operate in a volatile market, which will generate huge friction costs and contribute opportunities for other investors to deviate from value.

Herd effect 1

It means that in an investment group, a single investor always acts according to the actions of other investors, buying when others buy and selling when others sell. This is actually what we usually call herd mentality.

As we all know, hot spots have a great influence on the fund. For example, at present, the media and investors introduce a fund, which will soon become a hot spot for investment, attracting a large number of investors to invest for a period of time.

The thinking mode of the majority of retail investors has its obvious * * *, and their cognition of the same thing is basically the same, which is easy to cause the "herd effect" behavior of collective buying or selling.

Many people like to follow other people's ideas when investing, and they have no own opinions at all. When others say which fund is good, they think which fund is good. When they buy it, it is almost the best time to go up. They take it for granted that they will continue to go up after buying it, but at this time, they will face a high probability of falling after buying it, and then redeem it on the way down, but at this time, the fund began to rise again.

This behavior of blindly following the trend of buying and selling funds can easily lead to irrationality in adding positions when rising, irrationality in selling when falling, and naturally the fund returns are not satisfactory.

2. Emotion-driven trading

It was when the market was uncertain that I bought and sold, sold and bought in a short time.

Some small partners regard the fund as a stock investment, and the trading is very active. They can't wait to stare at it dozens of times a day. They look at the changes in the fund's net value every day, and redeem it when it falls, and purchase it when it rises. Frequent trading is not only difficult to make money, but also puts you under great pressure on investment.

Always staring at the account to see the ups and downs has a great influence on the mentality. If the market is a little restless, it will easily lead to chasing up and down, and it is impossible to make rational choices.

3. Buy high-risk funds

Be sure to know the risk and investment scope of the fund before buying it. Many investors just buy blindly when they see the high income of the fund, and they don't realize that the risk will be great.

High-risk funds refer to stock funds, hybrid funds and index funds, among which the relative risk of broad-based index funds is lower than that of stock funds and hybrid funds, such as CSI 300, CSI 500 and SSE 50. Medium risk includes bond funds and low risk funds are money funds.

For example, he is a steady investor, but in order to pursue high returns, he always chooses partial stock funds and QDII funds. When the funds fell, he began to worry about whether to add positions or redeem them. So the end result is that when you buy it, it goes down, and when you sell it, it goes up. It is natural to lose money.

Buying a fund is a state of mind. First of all, you should have a normal heart. Buying a fund is not speculation, but investment. Investment can't get rich overnight. Investment is a long stream, make friends with time.

Personal risk preference can actually be honed. For example, you are a steady investor, but when investing, you always like to choose a more radical fund. Then you will be afraid of losing money at first, but it will also force you to really study the fund, master the temper of this fund, and slowly hone it, so that you will not be afraid of falling, your mentality will be better and better, and your risk tolerance will be stronger and stronger.

What should we do?

"If you buy a fund, it will fall, and if you sell it, it will rise" is more subjective. The rise and fall of the fund has little to do with the trading of the basic people, but mainly with the rise and fall of the fund investment target.

To avoid this situation, on the one hand, we should optimize the fund, hand over the timing to excellent fund managers, and hold it with peace of mind for a long time, such as optimistic about the long-term investment value of the pharmaceutical industry and holding selected debt bases for a long time without extreme market; On the other hand, you can participate in fund investment through fixed investment, reduce income fluctuation and enhance investment experience.

In fact, the situation that funds fall as soon as they are bought and rise as soon as they are sold is essentially the lack of trust in fund managers. Historical data show that the relative index of active funds has excess returns, so it is necessary to select funds, understand the investment methods and strategies of fund managers and enhance trust in order to grasp the "good foundation".

1. Choose a fund that suits you.

Before buying a fund, you must have a full understanding of the fund before investing. Don't rush into the market and come to a tragic end. Fund risks are high and low, and performance is good and bad. Everyone should choose the one that suits them according to their actual situation. You can focus on the following aspects:

1. What is the investment scope of the fund? Investors must read the product prospectus carefully to understand its type and investment scope. For example, the same bond fund, some can only invest in bonds, and some can invest in stocks or convertible bonds; For equity funds, is the investment scope limited to China, or does it include Hong Kong stocks, US stocks and other markets? Products with different investment scope have great differences in risk and return characteristics.

Second, what is the past performance of the fund? The primary goal of purchasing funds is to obtain relatively excellent returns. Historical performance is a relatively intuitive and convenient evaluation method. Investors should pay attention to their long-term and short-term returns and the ranking of similar products.

Third, how high was the risk of the fund in the past? It is necessary to trace the historical performance of fund products as completely as possible, and observe the maximum retracement and the fluctuation of fund net value under fluctuating or unfavorable market environment.

Fourth, under the premise of clarifying the first three questions, seriously consider whether the expected risks and benefits of this fund match their own needs. If the product risk is too low, it may not reach the expected income target, while if the risk is too high, it may cause unbearable fluctuations. You must choose products that meet your needs.

Fifth, pay more attention to fund managers when conditions permit. The fund manager holds the investment power of the fund and directly affects the performance of the fund. Investors can pay more attention to the fund manager's working years, products and achievements, education, investment philosophy and style, which will also play a very important reference role in selecting funds.

2. Learn to vote

Many people do day trading because they care too much about the immediate income, but if they pay too much attention to the short-term market, they will ignore the effect of long-term investment and be easily influenced by short-term market sentiment, thus "chasing up and killing down", which is a big taboo in investment.

Buying a fund is investment, not speculation. It is impossible to get rich overnight. Make friends with time and be prepared for long-distance running.

If you are optimistic about a fund, invest more money at a time or simply choose ALLIN. Investors are often too confident in their investment system and think they have copied the bottom. As for the timing, Wall Street bosses have long said that "it is more difficult to accurately step on the market than to catch flying knives in the air". What you think of bargain-hunting is often counterproductive, and new lows continue to appear.

Compared with the "one-stop" investment method of one-time purchase, regular, batch and small purchases of fixed investment effectively reduce investment risks and account fluctuations, and let us stop and develop the habit of long-term investment.

Warren Buffett said that "there is no way to accurately predict the rise and fall of the market". Since Warren Buffett knows nothing, we ordinary investors should not try it easily.

So don't get into trouble. I struggle with short-term ups and downs every day. Choose a fund that you are optimistic about, invest firmly, and take profits when it is high, and there will be good returns.

3. Learn to diversify your investments.

Many people have a one-sided understanding of diversification, thinking that diversification means buying more than one fund. For example, someone bought six stock funds, thinking that they had diversified their investments, but this method was completely wrong in essence. In this decentralized way, the risk has not changed.

The correct way is to invest in an equity fund first, and then invest in money funds, bond funds, hybrid funds and so on. And invest in different fund types to spread risks.

To sum up, if you want to avoid the curse of "buy and fall, sell and rise", remember the following points:

First, invest rationally, choose funds managed by excellent fund managers, and don't blindly follow suit. And choose a fund that suits your risk tolerance. If you are a low risk taker, you can choose a bond fund or a mixed fund of stocks and bonds.

Second, invest for a long time, allow yourself to get rich slowly and be friends with time. As Buffett said: Because no one wants to get rich slowly. It is very normal for the net value of the fund to drop for a short time after subscription, so it is forbidden to chase up and down.

Third, it is recommended to make a fixed investment. Since it is impossible to buy accurately at the lowest point, you can buy regularly in batches in a safe area, increase investment when the market is depressed, and reduce investment and risk when the market sentiment is high.

Funds are not stocks. The idea we should lay is to pursue value investment and compound interest in time. Screening high-quality funds, buying at a lower cost and accumulating the value of assets for a long time to make a profit are the broad avenues for investment funds.

What should I do if the fund falls as soon as it is bought and rises as soon as it is sold?

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