I’ll go ahead and volunteer myself as a negative example. On Futu, apart from the money market fund that was automatically activated for subscription and redemption, I made two small experimental purchases of funds last April and October to test the waters. I remember at that time, Futu had just started offering funds, so it felt like getting a taste of something new. As it turned out, both ended up in the red. Fortunately, I didn’t invest much, so I never executed a stop-loss, and now I consider it a lesson bought with experience.
Reflection 1: Bond funds can also have drawdowns comparable to stocks; thorough research is needed before buying
These two charts represent the bond funds I purchased at that time. Back then, my thinking was that since I already owned stocks on Futu, bond funds typically carry very low risk and should be relatively safe, allowing me to earn slightly higher returns than a money market fund. The result? Losses reached 13% and 23%, similar to stock declines (of course, this is during a bear market, where declines are still less severe compared to stocks). Thus, any fund essentially carries risks, and we need to take a comprehensive approach rather than assume blindly. Proper due diligence must be done before placing an order. Bond funds are already considered simple and relatively low-risk. If we were to buy equity funds, even more careful selection would be required!
Reflection 2: Funds also require corresponding stop-loss measures
In fact, shortly after purchasing, they began to decline. At first, I was surprised—how could a bond fund lose money? Thinking it wasn’t logical, I assumed they’d bounce back eventually and completely neglected the idea of a stop-loss. As they continued to drop, I still held onto hope that they’d recover. Eventually, they fell to where they are now. Fortunately, the amount wasn’t large, and though selling now wouldn’t be at the lowest point, it's better than holding on...