1. Buy a fund , be fully prepared, invest with excess money, choose a long base, and dare to cover the position when it falls.
2. Mental preparation is very important. Your motivations and expectations shape your mindset. The fund is said to have made easy money lately. If you want to come in and make money, you can leave, do your homework, know it might go down, but will you cover your position even if it goes down? The former is easy to cut meat on the road, which is why others buy baijiu. The latter will be more calm in the face of decline. Knowing this is normal, they dare to cover their positions and wait patiently until they make money. Of course, being ready to persevere doesn’t mean persevering for a few years.
3. Standby capital investment. This is consistent with the first item. Only excess money can be held long-term. If the borrowing is for investment, or if the funds are eager to be used for other purposes, it must not be kept in the fund for a long time, and the probability that such a loan will not bring a lot of money. Borrowing money to invest is more likely to lose money.
4. Select long cattle base. This is also the premise of long-term holding. If you have confidence in the stocks you buy, you will boldly cover your positions on the way down, and you will be confident that you will eventually make money. Where does this confidence come from? Of course, this is what fund managers have done in the past, so long-term bull market fundamentals for fund managers that have passed at least one round are especially friendly to long-term holders.
5. Dare to cover the position when it falls. Covering the position when it falls, especially when the yield is negative, can effectively reduce the cost of holding positions. The lower the cost, the faster the return.
6. Don’t chase big-ticket purchases. Don’t look for high returns when buying funds . The lower you buy, the more cautious you are when you buy high. However, investors always consider buying funds because the information is relatively closed and they know it late. Lastly, they always consider buying a fund when it goes up.
7. Infrequent transactions. After buying a fund, it is best not to trade frequently. The more frequently you trade, the less profitable your fund will be. Because frequent transactions require fees, especially in less than seven days, a lot of fees need to be paid. Therefore, we must think twice before trading, buy after careful consideration, and prepare to hold for a long time after buying, and replace when the profit exceeds 10%.