The stock market is experiencing increased volatility. Financial professionals remind fund investors to avoid "over-trading" and focus on the selection of portfolio investments.
Li Zhihai, senior wealth manager at Shanghai Pudong Development Bank and an internationally certified financial planner, said that in fund investments, when prices rise, people want to add more investments to gain more profits; when prices fall, some rush to exit the market to reduce losses. This practice of "buying high and selling low" increases investment costs and also raises the probability of failure, such as missing out on gains or getting stuck with depreciated assets. Therefore, investors, especially beginners, should try to avoid "over-trading."