What does it mean for a fund to increase its position on dips

In the fund market, there are a lot of experience in the successful operation of the case, such as the decline of the position is a classic bold, but also can effectively reduce the cost of the operation of the position, but a lot of investors because it is a beginner, so they do not understand what this means, specifically how to operate, the following to say a few words to you.

What does it mean for a fund to add to its position on a dip?

Funds on the decline to add positions is that when investors hold the fund fell, do not sell but then buy some, for example, you hold a fund is 1000 shares, recently has been falling, many people sell, but you feel that this fund is irrationally falling, will soon go up, and then buy 500 shares, which is the on the decline to add positions.

The fund is similar to the principle of fund investment, that is, the more it falls, the more you buy, so as to reduce the cost of holding the position, but the fund investment is a regular purchase, the fall is a one-time purchase. Comparatively speaking, the fall plus position need more unique vision, in the market shock upward situation, compared with the ordinary fixed investment, the fall plus position can get a lower cost of ownership, to avoid the average cost of the bull market was raised, but it is also very likely to increase the increase in the high, after the increase in the fall never stop.

Funds on the decline to add positions is not to say that see their own buy the fund fell on the rush to buy, but to establish in you sure that you can have enough patience and money to adhere to, and to ensure that the fund itself is not a problem on the basis of the. After all, the reality is that the vast majority of people are in the mindset of judging the market to add positions on the decline, but the problem is that they can not accurately predict the market. Thinking they're playing a big game, they don't realize they're dead-ending the road.

After reading the above introduction, I believe that we can have a more comprehensive understanding of what it means to add to the fund on a downturn. The master said we can combine fixed investment and add positions on the decline, which is a very good strategy, but the key to see if you can grasp it, because this is an idealized state, not everyone is a master, not everyone can accurately predict.