Fortune MGMT

How can funds avoid buying at high points? Will the fund lose when buying at the highest point?

How can funds avoid buying at high points?

  1. Fund fixed investment

Fixed investment of funds refers to that investors set the purchase amount and time, buy in batches, and spread the cost of positions through continuous buying to achieve the purpose of risk diversification, and to some extent, avoid buying at a high point.

  1. See the market price trend of fund investment target

Different funds have different investment targets. Investors can look at the market changes according to the funds they invest in to make reference judgments. However, attention should be paid to the risks of the funds themselves. If they do not have the ability to bear risks, it is generally better to redeem in time.

  1. Look at the Fund's past performance

Although the past performance of the fund does not represent the future, it will still have some reference value. If the trend chart of the fund rises very high and is at a relatively high position, then it is necessary to buy cautiously at this time. At this time, it is possible to buy at a high point, followed by the maximum withdrawal rate of the fund and the net value of the fund.

Will the Fund Lose When Buying at the Highest Point

The fund will lose money if it is bought at the highest point. If we do not know how to add positions and buy more and more when it falls, the probability of loss will be greater. Of course, if the fund you choose is excellent and the long-term increase is higher, it may not lose money.

You bought at a high point at that time, and then his back began to fall. If it fell by 5 points or 10 points, you can choose to add positions once to reduce costs, and so on. If it fell again, you will continue to add until the fund no longer suffers losses, and you can wait for the rise.

How to sell funds in batches?

Skill 1: Valuation and profit stopping selling method

When the valuation of the fund is relatively high, it can be considered to sell. Its advantage is that it will not miss the bull market. It can slowly lock in the earnings in the bull market and effectively control its risk. When selling, it can set a value. When it arrives, it will sell a part. When it reaches a value, it will sell another part and gradually start to stop earning.

Skill 2: Target profit stopping sales method

After buying the fund, set a profit stop point. For example, when the fund increases by 10%, sell 1/3 of the positions; when the fund increases by 15%, sell 1/3 of the positions; when the fund increases by 20%, sell all the positions.

Tip 3: Target stop loss selling method

After buying the fund, set a stop loss point. For example, when the fund falls by 10%, sell 1/3 of the positions. When the fund falls by 15%, sell 1/3 of the positions. When the fund falls by 20%, sell all the positions.

How to sell all funds at one time?

The fund can be sold all at once, but it should be noted that the fund can not be redeemed all at once if it is a closed-end fund, while for open-end funds, if the redemption of a large amount may be limited, it needs to be redeemed by times. In addition, the fund can not be sold all during the period of suspension of subscription and redemption.

If you want to sell all the funds at once, you can operate them through third-party trading software or online banking fund accounts. If you buy funds at the fund, you should redeem them at the counter.

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