Novice investors are often confused as to why others are able to earn substantial profits in fund investment and keep saying that the operation is very easy, while their own profits in fund investment have been unable to go up, and may even lose money, due to the problems of novice investors in fund buying and selling operations. Therefore, this article, based on extensive research by fund experts, puts aside the way fund companies operate and the sales model of sales organizations, and focuses on how to become a skilled investor and earn substantial profits in the actual operation of investment funds.
A novice in investment funds should pay attention to the following four main directions when operating funds for beginners.
(1) Choosing the right time to invest and sell
When a novice investor buys stocks, they understand that they should buy when the price is low, and wait until the price is high to sell. But in the investment fund, because the fund has the characteristics of the need for long-term holding, resulting in most novice investors in the purchase of funds, only to observe whether the fund for the upward trend, as long as the fund upward trend is good, it is considered a good fund and buy a lot, will not sell in time. On the contrary, in the holding fund once the decline occurred, it hurriedly sold, the more it fell, the more it sold, can not stand any loss. But in practice, the purchase should refer to the long-term fund trends, to go to the purchase of funds priced below their original value, so as to ensure that when sold near the historical highs, there is maximum room for profit. In addition, short-term declines in funds should be analyzed from a long-term perspective and not sold in a panic in order to maintain maximum interest.
(2) Reduce the average number of trades per year
Many novice investors are used to making short-term money in the stock market, in a few months, weeks or even days for holding funds for trading, resulting in not only very low profits, but also a lot of wasted fees. In fact, the fund itself is a long-term investment, the longest time is 20 years, you can entrust the fund manager, to achieve long-term appreciation of the principal of the investment.
(3) Consider the past and future trends of the fund
Investment experts often remind novice investors, or skilled investors often mentioned in the investment risks are mentioned in the same sentence: the fund's past performance, can not represent the future development. However, many investors choose to ignore it, always thinking that their experience is the safest choice, which eventually leads to their losses. In fact, the selection of a fund should take into account whether it is adapted to the current market style? Has the original well-developed fund changed its fund manager? Is the performance and standard of the fund manager managing this fund trustworthy?
(4) Buy only the right number of funds
Many novice investors understand the principle of risk diversification, so they buy a large number of various funds, which makes it difficult for people with normal jobs to find the energy to manage each fund, greatly increasing the psychological pressure to invest and eventually losing money. In fact, the number of funds purchased too much or too little is not good, should buy the right number and for different styles.
In conclusion, the fund is different from stocks in the form of making money, investors should look at the long-term when trading operations, not to dwell on short-term interests, choose the right time to invest and sell, a stable number of annual transactions, and consider all aspects of the fund to buy the right fund. Finally, I expect that all investors can earn satisfactory profits.
