If the fund continues to rise because it follows the market trend in a short period of time and invests heavily in stocks of a certain industry or sector, while the performance at other stages is generally even poor, indicating that the fund only rises in stages, and the probability of continuing to rise in the future is very small.

If you continue to be optimistic about this outlet, you can buy it at one time and leave in time when the profit is almost out.

2. Long-term stable performance and good returns.

If the fund continues to rise, it is not only because the fund manager has rich operating experience, stable investment style, proper selection strategy, stable long-term performance and good returns. We can judge that as long as the market situation is not particularly bad, there is a greater probability of continuous rise in the future, which is exactly what we should hold firmly for a long time.

In the short term, the fluctuation of stock price and profit are not completely matched.

Because the net value of index fund = P/E ratio × profit+dividend.

Although profits have risen, the market may fluctuate and the valuation may change in the short term.

The profit usually increases by about 10%- 12% every year, but the valuation may fluctuate by 30%-50% within one year.

One year's decline in valuation can even offset several years' profit growth.

For example, from 20 12 to 20 14, the overall profit of A shares rose, but due to the sharp decline in valuation, the overall share price of A shares fell from 20 12 to 20 14.

However, as long as profits are rising, the increase of stock price will catch up with the increase of profits sooner or later.

There is a famous saying on Wall Street: "The market is always born in despair and shattered in hope." Many investment masters have put forward: "buy funds in a bear market and hold them for a long time in a planned way." When the bull market comes, it is time to cash in profits. " Riding a bull to see a bear believes that these famous sayings fully explain that investors should not only choose to buy in a bear market, but also buy in a long-term and planned way. This applies the method of fixed investment of funds, and finally sets up their own profit-taking point to clear their positions at the climax of the bull market.

The fixed investment of index funds is to buy and sell with fixed funds at a fixed time, such as buying 1000 yuan on 1000 every month, and then adding positions in the same way to dilute the cost, and finally obtaining the final income similar to "smile curve".