Affected by ***, many **'s earnings are relatively bleak, and many ** have fallen by more than 50% in the past two years. For those investors who happen to buy on the top of the mountain, it can be described as a huge loss. So, in the face of the huge loss of **, do you want to redeem **?
If you buy one** loss of more than 50%, it will definitely not be good, and it may even be possible to silently swear never to buy ** again. And for the ** that is still held, it's okay not to look at it, as long as you see it, you may have the urge to cut the meat.
However, once the ** is redeemed, it means that the floating loss becomes an actual loss, so it is not easy to make up your mind to cut the meat.
Whether to redeem a ** after a huge loss can be determined according to the following factors.
First of all, it is to see whether the loss is mostly due to its own factors or market factors. There are tens of thousands of them on the market, and there must be good ones and bad ones. For those who are already very poor, there is no need to be soft on redemption, and the sooner you redeem, the better.
And when the market is bad, even if there is nothing wrong with the ** itself, the income will most likely not be very good. However, for the market as a whole, it is unlikely that it will remain sluggish, and there will always be a time for recovery. As long as the market recovers, these ** with dismal returns due to a bad market are also expected to be reborn.
Therefore, if the huge loss of ** is mainly caused by the bad market, you might as well give the market more time.
Secondly, it is to see if there is a risk of liquidation. In times of dismal returns, the risk of liquidation also increases. For example, in the past year, more than 200 ** have been liquidated, a new high in recent years.
Although liquidation does not mean that the assets are cleared, once they are liquidated, it means that the loss will become an actual loss, and it is better to redeem it yourself.
Because in the process of liquidation, all the assets in the hands will be sold into cash, and the assets may be sold cheaply, and the liquidation process will not be completed in a day or two, even if some funds can be returned in the end, it will delay the use of these funds to make other investments.
So, if a ** is at risk of liquidation, it may be a better choice to redeem it. If there is no risk of liquidation, it depends on other factors.
Again, it's the subject matter of looking at **. For many themes, the subject matter largely determines its potential. With sunrise industry as the investment theme, the future potential is greater, while with sunset industry as the investment theme, the prospect may not be very clear.
Therefore, if the subject matter of a ** is not good, you can consider redeeming it. If you are worried that the market will pick up after redemption, you can choose to switch to other ** with similar declines but more potential.
In any case, for the ** that has suffered a huge loss, if it is not for the ** itself that is terminally ill, it is better to carefully choose to cut the meat and redeem it.
After all, if a ** falls by more than 50%, it may also mean that the market is close to the bottom.
Of course, if you want to unbundle as soon as possible, you can also increase your position after the market has a stabilization signal, or sell high and buy low to reduce the cost of holding a position.
So, if it were you, would you redeem ** after a huge loss?