1. How should we view the impact of bullish and bearish news on the stock market?

We should approach this rationally. Don't immediately think of selling off your holdings at the first sign of bearish news, or regret not adding more when you see bullish news, or get overly excited. Bearish news does not necessarily lead to a drop, and bullish news does not necessarily result in a rise. Moreover, whether it's bullish or bearish, the impact on the A-share market is limited, and eventually, the market will rebound. If your holdings happen to encounter bearish news, there are two possibilities: either the market opens low and rises throughout the day, or it falls for a day or two and then recovers. In any case, it will only cause a temporary dip in your funds, which will eventually rise again. There is no need to frequently buy and sell funds; long-term holding is the key to profit.

2. How many funds should one hold?

This depends on the size of your capital. If you have a substantial investment portfolio, you can appropriately invest in more funds to diversify your investments and spread the risk, with a balanced allocation in each popular sector. Around 10-15 funds should be sufficient. However, if your investment capital is limited, it is advisable to focus on a few funds, not too many—5-7 should be enough.

3. What should you do if your current funds are at a loss, should you sell?

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As long as you continue to have a positive outlook on the direction, the fund should be fine. The market fluctuates in cycles, and it won't keep rising or falling indefinitely. It's unnecessary to sell at a loss now; you might regret it later when the market recovers. As long as you haven't sold, the funds are just a number and won't disappear. If you sell now, that's when you truly incur a loss. This year, the mainstream sectors are mainly technology-related; just hold on to them.

4. Why is it said that one should not go all-in or heavily invest in funds? Wouldn't that mean earning more?The more you buy, the more you earn. Funds with heavy positions can definitely make more money in a bull market, but if you encounter a bear market or a sudden market downturn, you won't have a place to cry. It's like the saying, "As long as the green hills are there, there will be firewood to burn." Investing is not gambling, and it is not recommended to go all-in. You should leave enough room for your positions so that you can attack when you can and defend when you need to. Don't always think about getting rich overnight. A safe fund position is at 5-7 layers, and it is never recommended to be fully invested or heavily invested, otherwise, when danger comes, you can only watch helplessly.

Although I don't know if anyone will listen to my reminder, I still need to remind you often, as it is very important.

5. How to choose between Fund A and C?

If you are playing for the long term, it is better to buy Fund A. If you are playing for the short term, Fund C is better because the handling fee is more cost-effective. There is no other difference.

6. When should you sell after making a profit from funds?

There is actually no standard answer to copy. Some people like to sell after making a 2% profit, while others like to sell after making dozens of percentage points. There is no accuracy, but as long as you make a profit and sell, it is correct. Money is endless, but this is actually quite difficult because if you sell early, you earn less, and if you sell late, you may lose. The mindset is very important. If you hold for the long term and don't care about short-term fluctuations, your profits will definitely be higher. But if you are playing for the short term and care about daily fluctuations, it is better to sell after making a profit. If you worry about selling early and earning less, you can take profits in batches.

7. Is it necessary to hold bond funds?

If you have spare money, it is not a problem to properly allocate some bond funds. If you don't have spare money, it is best not to buy. Bond funds must be chosen well, and it is good to hold 1-2, not too many.

8. How is fund conversion done, and how is the time calculated for conversion?

On the selling interface of your fund, there will be an option for conversion, but not every fund can be converted. The specific is based on what is displayed on your page. Fund conversion is actually to save you the time of selling and buying in the middle, and it will not help you save on high handling fees. Everything else remains unchanged.Here is the translation of the provided text into English:

For a simple example, if you transfer your medical funds to the brokerage before 3:00 PM on Monday, then the next day's fluctuations in the brokerage will be related to you. Also, the funds you transfer out must be held for at least seven days; otherwise, there will still be a 1.5% transaction fee.

9. Why is the valuation of some funds inaccurate?

No matter where you look, the valuation of a fund is estimated based on the top ten holdings of stocks it holds. However, the key point is that the fund's top ten heavy stock holdings are updated once every quarter, and currently, the fund disclosures are based on the stock holdings of the previous quarter, which means they are outdated. Therefore, calculating the valuation based on old fund holdings, the fund manager will adjust the portfolio and stocks according to the market conditions, and it is not set in stone. Hence, the valuation often appears to fluctuate inaccurately, sometimes being too high or too low.

Some may ask, how can one find the most recent holdings of a fund? This is not possible to find out, as the stocks held by each fund are the little secrets of the fund manager, and according to regulations, they cannot be disclosed. They can only be updated once every quarter. By now, everyone should understand that every fund will have times when its valuation is inaccurate, no matter what kind of fund it is. It's quite strange how people think that when the fund updates are less frequent than the valuations, it feels like something is being hidden, but when the updates are more frequent than the valuations, it seems natural and there is no hidden agenda. It's important to view these things with the correct mindset.

10. How to identify which sector a fund belongs to?

The quickest and most direct method is to open the fund, click on the fund's profile and holdings, take a look at the top ten heavy stocks, and then search for what industry these stocks belong to, and you will basically know.

11. Can learning technical indicators really make money in the stock market?

The answer to this question is not certain. First, you need to understand that technical indicators are a reflection of the past trends in the stock market and cannot predict the future. Sometimes when you see a death cross (downward trend) in the technical indicators, the stock may rise, and sometimes when you see a golden cross (upward trend), the stock may fall.

The stock market is more influenced by news, which can cause the market to rise when the news is positive and fall when the news is bearish. Of course, technical indicators are not entirely useless; they can be used as a reference for buying and selling, but they should not be relied upon entirely. Technical indicators are akin to the trend charts in lottery tickets, serving as a reference only.

12. What to do if you are always worried about the ups and downs of funds the next day?Believe that many novice friends, when they first buy funds, will experience a change in mindset. For example, if you buy today and the price goes up tomorrow, you are very happy. But if it falls tomorrow, you become very upset and unhappy. This mindset is not correct.

We must understand a principle: funds are not the same as stocks. Stocks are about daily fluctuations, while funds are about long-term trends. The best approach is to choose a fund you are optimistic about, buy it, and hold it for the long term. If it falls, add to your position; if it rises, sell. Profiting is naturally straightforward. You must often hear me say not to care about daily fluctuations. I can give you a simple example:

You buy a fund today, and it falls tomorrow, making you unhappy. The day after that, you are happy. Or, you buy today, it rises tomorrow, and you feel you've made the right purchase and are very happy. The day after that, it falls, and you think you've made a mistake. This kind of thing happens often. When buying funds, the direction is crucial, like the new energy we bought before. There might be a brief decline in the middle or at the very beginning. If you sell out directly when it falls, you would have missed out on the gains. If you hold on, you could be making a profit of 10% to 45% now. I hope everyone can face the market calmly and analyze it seriously.

13. Which is better when buying funds: low or high valuation?

When you buy a fund, you will naturally also consider whether the fund is at a high or low position. However, high or low is just one of the criteria for deciding whether to buy, and the direction is the most important. If the direction is bullish, like new energy, it has been at a high point and keeps rising. If the direction is not favorable, like banks, they have been at a low point and keep falling without rising. If the direction is bullish, everything is fine; if the direction is not favorable, nothing is good.

14. Is it better for a fund to have a large or small scale?

When buying a fund, everyone will first check whether the fund's scale is large or small. To be precise, there are different advantages and disadvantages to having a large or small fund scale, and after I explain, you will understand.

Advantages of a small fund scale:

A small fund scale allows the fund manager to adjust the positions more easily, and their operations are more flexible. As the saying goes, a small boat is easier to turn.

Disadvantages of a small fund scale:If the fund size is small, there is a risk of the fund being liquidated.

When a fund is liquidated, it doesn't mean that everything is lost; instead, it is redeemed according to the net value of the fund on a certain day, and the funds are returned to the investors.

Advantages of a large fund size:

A large fund size definitely has a very low probability of being liquidated, and the fees for large funds are generally relatively lower.

Disadvantages of a large fund size:

With a large fund size, it becomes more difficult to operate, requiring more stocks to be allocated, which may lead to the fund manager having difficulty focusing on tracking each stock. This is not conducive to the fund manager's rebalancing and affects operational flexibility, which can have a negative impact on your returns.

Regardless of the fund size, a fund that can make money is a good fund. A large size without profitability is useless, and a small size with profitability is fine. Personally, I would not buy funds that are likely to be liquidated. I can confidently say that after so many years of buying funds, I have never bought a fund that has been liquidated. I carefully select each fund, just like the ones I currently hold, such as China Life Security, Hua Shang Wan Zhong, Yong Ying Smart, and Zhong Hai Environmental Protection, which are not large in size but have ended up with profits ranging from 16% to 50%.

15. How to determine whether the market opens high or low?

You can refer to the FTSE China A50 Index, which opens earlier than the A-shares and thus has some predictive value for the A-shares. Generally speaking, if the A50 index closes up or opens high, the market is likely to open high; if the A50 index closes down or opens low, the market is likely to open low. Note that this can only be used for reference and is not a 100% chance. It can only predict the opening, and after the opening, it has no reference value. After the opening, you should look at the movements of the main foreign capital.

Additionally, the rise and fall of the U.S. stock market also have a certain impact on the opening of the A-shares. For example, if the FTSE China A50 Index closes up, but the U.S. stock market falls sharply, the A-shares may still open low. Or if the FTSE China A50 Index closes down, but the U.S. stock market rises sharply, the A-shares are likely to open high.The views expressed in this article are solely those of the original author and are for reference only, not as investment advice. Investing involves risks; please make prudent choices.