Because of the high position of stocks in stock funds, its performance is mainly related to the stock market. The higher the position of stocks, the higher the correlation with the stock market.
The market is constantly changing in the cycle, and stock funds also have suitable trading points. Buying in a favorable position can bring higher returns. That is, you need to make a certain degree of timing. How to judge the trading point of stock funds?
Looking at the net retracement, if an excellent stock fund is in a bull market, its increase is continuous to some extent, but it is not linear. At this time, you can choose the best trading point according to the retracement data. When the fund's net value retreats to the lower-middle position in the similar rankings in the past week or month, it is a relatively low position and a good buying point.
When will profits stop?
If you want to stop profit, you must preset the stop profit point in advance. For example, when your expected income reaches 50%, you will start to choose to sell in batches, so that part of the income can be settled, and the rest of the funds will respond to the changes in the later market and gradually make profits.
In addition, when the market continues to raise interest rates, it may indicate that the amount of funds flowing into the securities market will decrease, which will lead to the decline of stock prices. At this time, it is also time to consider taking profit.
If there is a major change in the fund you buy, such as changing the fund manager, you don't have to rush to make a decision. You can study for a while. If the fund is incompatible with the new fund manager, you can consider selling the fund to hedge it.