Historical data tells us that there are no absolute laws to follow in the market. We can't clearly predict when the market will rise to many points, or when it will fall to many points, and then rebound from where.
So how should we judge the profit-taking point of the fund?
First of all, we should choose the reference index and judge the valuation interval of the index. If the valuation percentile of the reference index is close to the historical high range, we should pay attention to whether it is time to take profits.
To set the profit point of the fund, you need to set a goal, such as 20% and 30%, according to your psychological expectation of investment income before investing.
The length of investment should be considered when taking profit targets. If your investment has been going on for three years and you have earned 15% by now, then when considering whether to stop making profits, you should ask yourself whether the three-year income of 15%, that is, the average annual yield of 4.7%, is in line with your profit target.
So the profit-taking goal must be related to time. The longer the time, the higher the total income you require. The profit-taking target varies from person to person and from product to product, and basically cannot be lower than annualized 10%.
For short-term investors who are eager for success, set a profit target, sell it in time and be satisfied in time. A good investment mentality is more conducive to investment. It should be noted that taking profit in time does not mean frequent operation.
For mature investors, they have always insisted on their own fixed investment plan. It is a better choice to save chips in a bear market, earn profits in a bull market and pursue longer-term investment income.