The maximum retracement has little effect when the market is good, but once the market fluctuates and the risk coefficient becomes larger, it is a very important reference index.

When buying a fund, it's best to find a fund that earns more, and the small one quits? Why should we pay attention to the small retracement? For example, an old investor bought a fund, and its net value dropped from 10 yuan to 8 yuan, with a maximum withdrawal of 20%. If I return from 8 yuan to 10 yuan, how much will I need to increase? (10-8)/8=25% has dropped by 20%, but it still needs 25% to recover. Buying a private placement, the private placement network is free of subscription fees, which means that the more it falls, the harder it is to rise back. So in what range is this maximum retreat value considered small? Generally compared with the market.

The biggest retracement can also help you find a more cost-effective fund. Generally speaking, retracement is directly proportional to income. The higher the fund returns when the market is good, the greater the possibility of withdrawing when the market is bad. or vice versa, Dallas to the auditorium