In fact, this is a question of income expectation. What is your expected income? So, let's talk about understanding our investment profitability today.
The first step is to consider your investment profitability.
Most investors are attracted by making money when they enter the market. For example, they think they can earn so much or more by buying funds. Opening your mouth will double or triple your income, which means that you don't have a reasonable expectation of your income and haven't considered how much risk you have to take to earn so much. It is impossible to get high returns without risk. There are many types of funds, covering all kinds of risk levels, so we can't generalize the risk of funds. The first step in managing income expectation is to think about your own income expectation and re-examine your investment income ability.
The second step is to set your own investment income level.
Set yourself an income expectation according to your income expectation. For example, if you want to earn 50% or 80% a year, whether it can be achieved or not, you should have the courage to decide first. Set a satisfactory and comfortable income level, because you don't know much about the market at this time, so there is no so-called reasonable expectation.
The third step is to constantly revise the income expectation in the transaction.
Everyone's investment background is different and their investment level is different. Therefore, different investment methods lead to different investment returns. As long as you have experienced the polishing of the market, you will know what level you can reach. In the process of trading, you will constantly adjust your earnings expectations, and eventually you will gradually determine an interval. According to big data statistics, on average, the expected annualized return on investment of equity funds is between 12%-30%, and that of bond funds is between 4%-8%. Regarding other partial stocks,
Once you enter your expected income range, you can choose to take profit according to market conditions. For example, if you invest in a stock fund, the expected return is 20% to 30%. When you earn 20%, you are not optimistic about the current market. You can choose to take profits as soon as possible. If you think the market will continue to rise, you can certainly hold it for a while. Because it is an interval, it is a flexible choice.
Take a profit and start investing again. Of course, if you expect higher returns, you may need to take higher risks or have a more professional level. If you feel that your ability is immature or conservative, you will appropriately lower your expectations in market transactions. In short, only when you have experienced it will you know what is best for you.