Analysis: Should you sell to take profits when the fixed investment return rate reaches 30%?
Someone said that the fixed investment funds have been around for two years, and the return rate of one of them has reached 30%. This made her very happy and felt that she had persisted in the early stage. It's well worth the investment. At the same time, she was also confused and didn't know whether to sell and take profit. Today, the editor will share with you whether you should sell to stop profit when the fixed investment yield reaches 30%, for your reference only!
Stop-Profit/StopProfit, also known as stop-profit, stop-profit, Take profit. ----It is to place an order to ship at your target price, and stop loss is to place an order to ship at a price that you can bear the risk of loss. The concept of taking profit is to close when the profit is good, and don't make the profit reach the highest level. The center of thought is "stop". Thoughts determine actions. The methods of stock trading are essentially different. The key to profit is to look for good opportunities. Seize the opportunity as soon as it appears. If you miss it, let it pass (the key to renewal). Find another opportunity. When the opportunity comes, seize it tightly. When the opportunity comes, When the signal is transformed, let go immediately.
Common methods for funds to stop profits include the target rate of profit stop method, the maximum retracement method, the market sentiment method and the valuation stop profit method.
Various methods vary, and focus on different situations. Now among the funds that Xiaoxia has invested in, one has a return rate of 30%. Use the above four methods to check one by one, and then determine whether to sell to take profit.
Target rate of return method
This depends on the target rate of return set by Xiaoxia when she originally made the investment. If it has been reached, then consider selling to take profit. During the specific operation, you can first stop the profit to secure a portion of the holding fund, or you can sell the entire amount to stop the profit. It mainly depends on whether you are confident about the development of the market outlook. If you are confident, you will take partial profits. If you are not confident, you will take full profits.
Maximum retracement method
See if the fund has retracement, and whether the difference between the last highest point and the current net value has reached the threshold you set. . For example, the highest value of this fund in the past three months is 1.5 yuan, and the current net value is 1.35 yuan. At this time, the fund has retraced 0.15 yuan, and the retracement rate has reached 10%. Is such a retracement acceptable? If not, Then sell to take profit.
Market Sentiment Method
Go to the various discussion forums of this fund to see if there are any comments from people who have spoken. If they are all cheering comments, it means that the market sentiment is relatively hot. You can consider selling to take profit, otherwise don't sell.
Valuation stop-profit method
Look at the index valuation corresponding to this fund. If it enters the overvalued zone, consider selling and taking profit. If it does not, continue to hold the position. . Some funds may not have corresponding indexes, so you can work around this by looking at the fund's holdings and finding relevant theme indexes to check for valuation reference.
Under normal circumstances, if you can achieve one or two of the above indicators, you can consider selling to take profit. It is not necessary to achieve all of them.
If the redemption limit is reached, the fixed investment plan can continue to be implemented. Fixed investment is a matter of steady flow, or you can pause for a period of time, continue to observe, and wait for the opportunity to restart again.
In reality, most people choose to use the target income method to stop profits.
This method is relatively easy to operate whether it is in a unilateral rising market or in a volatile market. As long as the target rate of return is reached, you can decisively redeem and lock in your own income. Stay safe.
This method can increase the enthusiasm for fixed investment to a certain extent. Even after the profit is stopped, the fixed investment plan can continue to be implemented.
Of course, the target rate of return method is not the best choice. In a unilateral rising market, it is easy to miss the larger market.
Conclusion: Each profit-taking method has its advantages and disadvantages. Xiaoxia needs to flexibly adjust according to her actual situation. No matter which profit-stopping method you choose, you should not forget the original intention of investing, or it can prevent excessive greed. Sometimes the real profits will be more helpful in increasing the overall balance of the account.
The concept of take profit is widely used in various investment fields. For example, when your stock reaches a certain price and a profit appears, and you plan to leave the market and close the position, the exit at this time is take profit. ; For example, in the field of futures, whether you are a long or short trader in the market, as long as there is a favorable moment for your trading direction and you feel that you can take profits, then your exit is also a take-profit; similarly, in foreign exchange , commodities and other business and trading fields, profit-making exit can be called take profit.
Taking profit is the act of giving up the increasingly risky profit opportunities and instead harvesting the existing profit results. Its original intention is to prevent the profits obtained from turning into losses, so it is better to give up the high-risk continuation. Profit opportunities. In the gold market, the reasons for opening a position must be sufficient, certain, and prudent, while the reasons for closing a position can be simple, intuitive, and hazy. As long as the trend changes, investors should take the initiative to stop profits, so as to avoid market risks to the greatest extent.