Advantages and disadvantages of long-term holding
Advantages:
The most worry-free and easy. Regardless of red beans and mung beans. If there are more red beans left after mutual cancellation, you will earn, and vice versa. It operates on the belief that the market is growing. It is estimated that the yield of red beans is higher than that of mung beans during their own possession (it can be 10 years or longer), so they are fertilized and sown, waiting for harvest.
Disadvantages:
During the period when both red beans and mung beans were growing in series, many unwanted mung beans were picked up, which was a pity. Especially sometimes, after the signal that the stock index is going to fall continuously is issued, we still continue to pick mung beans and do things that are counterproductive, which delays the time and can't help but regret it in retrospect.
A friend suggested that when a string of mung beans may appear, converting the fund into a money fund will have a good value-preserving effect.
Although you are waiting for the harvest, mathematical analysis shows that if the total weight of red beans harvested by your two funds is equal, then the fund with the same bean size can make you get the most benefit. Therefore, it is better to buy a fund with stable ups and downs.
Advantages and disadvantages of band operation
Advantages: Preferred features. When a long string of mung beans appears, some of them can be avoided, thus reducing certain losses.
Disadvantages:
1, and the accumulated handling fee is high. It is required to strike a reasonable balance between the number of operations and the increase of compound interest. The higher the frequency of operation, the more times interest is calculated, but the more fees are paid. After five operations, the principal will decrease by 5.38%, 10 decrease 10.47%.
If the stock operator is sure that he can earn this 1. 1 percentage point every time and make the red-green price difference higher than the long-term holding operation, he can consider it.
2. It is difficult to guarantee the ideal red-green difference. There is no guarantee that all the red beans will be picked and all the mung beans will get out of the way. The technical requirements for operation are high, depending on the market trend and the appreciation trend of specific funds. The difference between picked red mung beans must be significantly higher than the natural distribution of red and green values between two operations. For example, if the natural distribution is 25 to 20 and the difference is 5, your red and green screening difference must be above 7 to have operational value.
3. It is difficult to adjust the operation cycle to synchronize with the stock market. Generally speaking, the shortest operation cycle can only be 10 day, because buying (displayed after T+2 days) and selling (displayed after T+7 days) are at least 9 days. It would be a pity if there is a big increase during the period. The way is to borrow as much money as possible equal to the redemption amount and replenish it in time to ensure that your funds are always in a state of appreciation. Or leave some liquidity in the card and rush out at the right time.
Summary:
Short-term operation is to use the fluctuation of stock price to earn the price difference, and it needs to have its own effective opinions on technical analysis and event analysis. Long-term holding is to invest in the growth of a company and wait for the actual value of the company to increase, which has great expectations for the future profit growth of the company. Need to have a certain ability to interpret economic policies and analyze the valuation of industry companies.
You can choose the right investment method according to your own preferences and time and energy.
Anyway, you decide which way is better. Friends who like the band will definitely only have its advantages, and friends who like to hold it for a long time can only see its advantages. Anyway, their advantages and disadvantages have been presented to everyone. Choose according to your own needs, and the two cannot be separated.