The market is changing rapidly, especially when the index is rising and the point is close to the historical high point. Investors are often most entangled-they want to redeem, but they are afraid of missing the opportunity of the market outlook, but they have to bear the high risk of waiting and seeing. Today, Bian Xiao will share with you the maximum cash withdrawal and profit-making method of fixed investment, for your reference only!

Maximum extraction and profit-making method

Maximum retracement refers to the difference between the lowest point at the bottom of the valley and the highest point before the bottom of the valley when retracing at any historical point in the selected period, usually expressed as a percentage.

Simply put, the absolute value of the maximum decline between the highest (pole) point and the lowest (pole) point of the index after a period of time is the maximum retracement range.

How to use the maximum withdrawal and profit-taking method?

Operation method: After the bull market starts, when the return rate of fixed investment exceeds the take-profit signal line, the withdrawal of fund net value (index closing price) should be monitored daily. Once the exit rate is greater than the set maximum exit threshold, the profit of the fixed investment in the bull market will be emptied and locked.

Suppose: when the cumulative yield of fixed investment reaches 50% (take the profit signal line), consider quitting, and invest 1 0,000 yuan every Friday, and choose the interval from the beginning of 2007 to the end of 20 15. When the return rate of fixed investment exceeds 50%, the following maximum withdrawal threshold will be used for profit. When the maximum withdrawal threshold is triggered, all the previous fixed investments are sold out.

In addition, according to the fixed investment of 1000 yuan every Friday, when the return rate of fixed investment reaches 50% again, consider the maximum withdrawal threshold set before, and so on.

According to the calculation results in the above table, when the maximum retracement threshold is raised from 5% to 15%, the cumulative rate of return and annualized rate of return of the fixed investment of the Shanghai and Shenzhen 300 Index show a downward trend. It can be seen that when the maximum exit threshold is set too large, investors will bear higher risks. Because if the market continues to fall, the yield will continue to decrease and the loss will increase.

However, does this mean that the smaller the maximum retracement threshold, the higher the yield? We still set the maximum retracement threshold at 5% to 15%, taking the CSI 500 and the Growth Enterprise Market Index as examples. Maybe we'll find something new.

The calculation of CSI 500 and GEM shows that even if the maximum retracement threshold is gradually lowered, the rate of return may not necessarily increase gradually. The reason for this situation is market fluctuation. When the maximum retracement threshold is set too small, investors are likely to miss the bigger bull market of "a small decline at present and a rapid rise in the future", thus losing the opportunity to obtain higher returns.

Therefore, there must be a more suitable range (value) for the setting of the maximum back-off amount. According to the above results, we know that in the CSI 500 and GEM index, when the maximum retracement threshold is set at around 10%, investors can get the maximum benefit from this method.

In addition, by comparing the cumulative yield with or without the maximum retracement point, we can also think that when the maximum retracement point is set reasonably, the income is far more than when there is no retracement point.

Limitations of maximum withdrawal and profit taking method

The best maximum retreat point is not easy to determine. If the threshold is too small, it is easy to miss the bigger bull market behind; If the threshold is set too high, investors will have to take higher risks, because no one knows whether it is a sign of a sharp decline after facing the current low or a turning point to meet the historical high.

Using the maximum retreat take profit method means that you can't sell at the highest point. That is, the selling price is generally a relatively high point after the highest point.

If the take profit signal line is set too high, you will miss the yield of some small bull markets. For example, if you set the take profit signal line to 50%, you will miss the opportunity of 30%~40% fixed investment yield, so the take profit signal line should be set according to your personal expectation of yield.

In general, few people can sell at the highest point. After all, this timing requires excellent luck. Therefore, throwing at a relatively high point and getting high returns is enough to make investors secretly happy, and there is no need to pursue the so-called "highest point" excessively.

The above is the introduction of the maximum withdrawal and profit-taking method. In fact, every profit-taking method has its best application background, and investors should not misuse it blindly. Only by putting the profit-taking method into practice can we "suit the remedy to the case" break through the routine and reap the "fruitful results" of fixed investment!

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

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