Once in the fund, it is as deep as the sea. The most common investment suggestions that citizens have heard are "Don't chase after the ups and downs", "Don't hang yourself on a tree" and "Don't just look at short-term rankings". A few words are simple, but it is difficult to operate. Why? Today, Bian Xiao will share with you why I still can't do a good job in fund investment after hearing many reasons, for your reference only!
Know everything. Why not make money?
In fact, a qualified fund investor must first overcome his own mentality. Successful investment needs to be anti-human to some extent. Because of the instinct to escape the pain and obey the pressure of collective behavior, investors easily forget the common sense of investment, forget to restrain the fear and greed of human nature and then get lost in the red rise and green fall of the stock market.
1, overconfidence
Overconfidence means that it is difficult for people to evaluate themselves correctly, often exaggerating their abilities, and it is easier to overestimate themselves in the accuracy and correctness of cognition. You think you are a king, but in fact you are bronze.
Moderate self-confidence is a good thing, but overconfidence may become a weakness of human nature. Overconfidence in investment is likely to bring a lot of harm, such as incomplete cognition, overestimation of investment value, obstinacy and neglect of risk control.
In the investment process of specific stocks and funds, overconfidence often leads to the consequences of ignoring risk control. For example, in the middle of 2020, for a period of time, we were overconfident in semiconductor industry funds, and for a period of time, we were overconfident in medical theme funds? More interestingly, these overconfidence occurred when the related funds continued to rise and the rate of return was extremely high, which coincided with the stage of investors' blind herd behavior. Under the above background, investors who buy funds on the market often only see the short-term benefits of funds, completely ignoring risk control and showing gambling-style operation.
When investing, in order to reduce the harm of overconfidence to us, we should keep awe of the market, maintain an open and compatible investment mentality, and persist in in in-depth research and continuous understanding of investment.
2. Conformity psychology
Herd psychology, also known as herd effect, refers to the psychology of taking some concerted action unconsciously without thinking and being trapped by emotions. There are many manifestations of herd mentality in investment. From a larger perspective, it is a typical herding behavior to plunge into the flock in a bull market and disperse in a bear market.
From the perspective of fund investment, chasing short-term top-ranked funds is also a herd behavior. This kind of psychology gives us more sense of security, and being an independent alien will always make people feel psychological pressure. Under the influence of collective emotions, investors can easily blindly follow the trend, be caught by various hot spots that change from time to time in the investment process, and be infected by the public or fanatical or depressed emotions. Over time, I lost the ability of independent thinking and rational judgment.
The typical performance of herd mentality in stock and fund investment is chasing up and killing down. It is not difficult to explain why only a few people can make money in the market.
3. Regret and disgust
Have you ever had such an experience in the process of fund investment? Looking back, I regret that I didn't buy Daniuji; Looking back at the market, why didn't you sell at a high point? Even investors who don't make mistakes sometimes lament that they failed to make better fund investment choices in comparison. Regret aversion has many hazards, and understanding regret itself can help us reduce the occurrence of regret. After all, we can try to be the masters of our emotions.
Regret aversion will seriously interfere with investors' investment, and regret aversion will lead to a series of investment psychological misunderstandings. Investors regret not buying funds at low prices. Even if the future will usher in a critical period of investment opportunities due to market adjustment, they will choose to continue to flee because of such regret and disgust.
How to overcome human weakness and do a good job in fund investment?
In the process of fund investment, we will face the test of investment psychological problems more or less. When investors adopt different strategies and attitudes, the frequency of human nature test in the investment process will be very different. We all know that human nature can't stand the test, so we should develop good habits on the road of fund investment to reduce the exposure of human weakness.
1, calm down and guard against arrogance and rashness.
You can't help but open accounts frequently and look at the market to see the income, especially the top ten stocks you bought in the fund announcement. It's okay to go up, but you'll be anxious to go down.
In fact, the closer investors are to the market, the more they look at the market and the more frequently they operate, the more difficult it is to get satisfactory results.
Because you always like to look at your account, you will feel depressed when you see the loss, and finally you will do some irrational behavior. For example, if you see a relatively large loss, you can't help but redeem it first, or if you see that the fund has risen particularly fast, you have been chasing it up.
Fund investment is actually anti-human. The harder you work, the lower your income.
When floating losses, think about the belief of long-term investment, think about the incremental funds that your career progress can bring, and continue to buy high-quality and cheap assets. If you can put your mind right, you won't be easily tested by too many negative human nature.
Simply looking at fund investment, talking about income, better controlling risks, not seeking the highest, but seeking the average, can surpass most investors.
2. Improve your own investment logic and investment system.
Blind investment without goals is difficult to succeed. The experience of most people is that they rush in when they hear that others are making money, thinking only of "getting rich overnight". This kind of blind speculation will definitely lead to losses.
Other people's investment system may not be suitable for you, and it needs to be judged according to investment experience, risk tolerance, amount of funds and annual income.
First of all, experienced people will naturally fear the market and have strong adaptability, while novices don't know enough about the market, so people with less experience should start with stability.
Secondly, look at the risk tolerance, which is the best indicator to determine the risk tolerance. Some people can only accept a loss of 10%, while others can accept 30%. Risk tolerance is the premise of fund selection in the later period.
It also depends on the amount of funds and annual income. Generally, large funds like steady investment, and small funds can be more active.
Because investment is a long-term thing, what we have to do is not to make a profit, but how to keep ourselves "lucky" for a long time. Keeping one's own ability circle is a safe choice to keep long-term "good luck".
3. Don't just look at short-term performance when choosing a fund.
Is the main criterion for you to buy funds to find funds with good short-term performance? When you see a fund that has performed well in the past few stages, you will think that this fund is very good. And choose to invest in some "beautiful-looking" funds, and the fund holding time is often within one month. Then your investment results may be trapped.
The "champion curse" is also widely circulated in Public Offering of Fund-funds with top performance in the previous year tend to be mediocre or even bottom in the second year.
There are many reasons, such as the influence of market risks, misjudgment of market conditions and so on. The most important thing is the switch of market style.
The A-share market is not always unilateral, but switches between different styles.
The market style is constantly changing, and no matter how good the fund manager is, he can't guarantee that he can accurately grasp the market every time.
Moreover, most funds with outstanding short-term performance have distinctive styles, so once the market wind changes, such funds are prone to callback.
Therefore, the fund should make value investment and hold it for a long time, because the fund with poor performance in the current market style may usher in its own spring in the next market style.
On the contrary, if investors blindly pursue market hotspots and lack the ability to choose the right time, they will try their best to lose money in the end.
Therefore, choosing an excellent foundation cannot be solved by an indicator. The comprehensive performance of the fund (including long-term, medium-term and short-term), fund managers, fund companies and their own risk tolerance are all factors that need to be considered.
The biggest feature of the volatile market is that the rotation between plates is accelerated, and it is unlikely that a plate will have a big market. Hot spots often end in two or three days. Remember to buy theme funds after chasing up and down.
4. Reasonable asset allocation.
Knowing "don't hang yourself on a tree", we should also know that we should not only disperse in quantity, but also in fund types, styles and positions, otherwise there will be no asset allocation at all.
Good asset allocation is balanced allocation and position allocation.
First of all, among many asset allocation schemes, stock+bond is the most respected and widely accepted simple allocation scheme. Why is the allocation of stocks and bonds still so hot today? This is mainly due to the different characteristics of stocks and debt assets.
According to Standard & Poor's family asset allocation theory, this paper introduces a simple and classic stock and debt allocation scheme, which is suitable for most families' financial management and can be used for reference.
Step 1: Take 5%- 10% of the funds as short-term cash (within 1 year) and buy cash management products such as money funds or bank wealth management (large expenditures are counted separately);
The second step: take out 20%-30% of the funds and buy products with certain risk and return, such as stock funds;
Step 3: The remaining 60%-70% of the funds are used to buy bond products and hold them for a long time.
The number of funds held is not as large as possible. Generally, it can be controlled within 10, and it can be increased or decreased appropriately, but don't be greedy.
Secondly, it is also important to control positions. For the volatile market, the most important thing is the timing of adding positions. If you have a heavy position, you will miss a good opportunity to increase your position, and it is difficult to outperform the market and get excess returns.
Reserve emergency funds and get ready. Life goes on. The purpose of our investment fund is to improve our life and fight inflation. On the one hand, reserve emergency funds for your own life to resist the past when the market fell sharply, and at best, you have the opportunity to make up your position; On the other hand, if the market rises more than expected, the position will gradually decrease, and the position pressure will be greater before the Spring Festival. It is estimated that there are still many investors who regret not lightening their positions at that time.
5. Fixed investment in batches, timely take profit.
Everyone knows that the fixed investment of the fund can avoid the trouble of timing, but few people insist on fixed investment. It is necessary to know how to take profit in time and understand that not all funds are suitable for fixed investment, and fixed investment also needs to be taken care of in time, insisting on long-term investment and long-term flow. The stock market is unpredictable, and it is far more likely to start a fixed investment at a relatively reasonable position than to wait for the bottom to make money.
The advantages of fixed investment fund, diluting the risk of timing, saving time, effort and worry, compulsory storage, long-term persistence will get a deposit and so on. Even so, not all funds are suitable for fixed investment. Be sure to choose stock funds or index funds with large fluctuations as investment targets.
In the process of investing in funds, it is very important to know how to make profits in time. There are many ways to stop profit, and the most popular method is the target income stop profit method, that is, set a reasonable target rate of return and redeem it in time after reaching the stop profit.
The secret of fixed investment is to spread costs and gain more shares through fixed investment in a bear market. Just like in the process of marathon, if you want to run to the first place, you must run the whole course. Many investors don't fully understand the "smile curve" of fixed investment because they give up halfway and finally give up. Fluctuation is actually something that fixed investment is more willing to face, especially in the process of downward fluctuation, we can buy more stocks at lower cost.
Because no one can predict the future level of the stock market, if the market continues to rise, and you have redeemed it all at this time, don't miss this market, so it is a relatively more reasonable choice to take profits in batches.
Summary:
Investment funds don't need to care too much about short-term fluctuations, and the concept of long-term investment is the king of making money. Understanding the human weakness in investment is the premise of persisting in long-term investment and the key to making correct decisions continuously. Investment is a practical "craft job". Know your own human weakness, reflect and improve yourself in investment practice.
Articles related to fund investment:
★ Introduction to Xiaobai Fund
★202 1 You won't lose everything if you buy foundation.
★ How do investment funds obtain excess returns?
★202 1 Why did the fund fall?
★ Common sense of investing in US stocks
★ Introduction to stock trading terms
★ What is the standard of fund classification?
★ How to make a fortune from fund investment 202 1
★ What are the characteristics of short-term financial management funds?
★202 1 The decline in stock turnover represents the significance.