Buy when the market is low and sell when the market is high. This is the most basic thing. Of course, you should also choose a relatively stable fund with high early returns. If you are really busy and don't have time to pay attention to the stock market, you can also choose the fund to vote, so the average income is not bad.
When is the best time to sell the fund?
Sell in bulk
Because it is difficult to predict the market in the short term, it is the same as buying funds in bulk and selling funds in bulk! Personally, I think it is divided into at least three batches or more, and the whole batch sale spans one week or more. The specific operation depends on the individual situation.
When you need money, sell it in batches in advance.
When we need a lot of money, such as getting married, buying a house or buying a car, we often need to sell the fund. As the market is difficult to predict in the short term, once it is determined that a large amount of funds are needed, it is the best policy to put them in time. Please sell the funds in batches at least one month in advance!
When Morningstar's rating was downgraded to Samsung, it was resolutely sold.
When the Morningstar rating of a fund is reduced to Samsung, it must mean that this fund cannot return to Excellence! However, it can be considered that this fund has regressed seriously and the probability of returning to Excellence is very low! At this time, resolutely sell the fund, buy or directly convert it into another excellent fund! As for the three-year Morningstar rating of the fund, you can check it directly in Yu 'ebao or Morningstar official website! In addition, because fund conversion eliminates the time difference between selling and buying another excellent fund, this method is recommended!
When the market is overvalued, sell it in batches.
Although the stock market is overvalued, there are many reference indicators. It's just that ordinary people and even many professionals are hard to judge! Because there are always empty parties and multiple parties in the market, and the truth is often in the hands of a few people. In addition, the overvalued market does not mean that the stock market will not rise in the short term! So these indicators are for reference only!
When the P/E ratio is high, sell in batches.
Shanghai and Shenzhen 300 P/E ratio
For the whole market, the P/E ratio of broad index such as CSI 300 is still a good judgment. From the data point of view, the P/E ratio above 18 times is definitely overestimated, and it should be cleared or maintained at a low level of around 10%. But should the price-earnings ratio of 15 be overestimated? Is it basically reasonable? However, it should be safe to substantially reduce positions! In addition, should the P/E ratio of 12 be underestimated? Is it basically reasonable? However, it should be a good choice to maintain a medium position.
2. When the P/B ratio is high, sell in batches.
Whether the valuation of bank stocks is overvalued or not, the P/B ratio is more telling than the P/E ratio. But because bank stocks are too big, it is difficult to rise. Bank theme funds are not recommended and further analysis is not made.
3. When the stock market is boiling, sell in batches.
When the popularity of the stock market is boiling, many people cheer for the stock market, and retail investors come into the market one after another. The chasing atmosphere is warm and the turnover is huge, indicating that the stock market is too hot. At this time, it is very dangerous. Whether it will continue to rise or not, it must be sold in batches!
4. When major shareholders reduce their cash holdings, they will sell them in batches.
When major shareholders have reduced their holdings and cashed in, it shows that the market is overvalued and sold in batches.
5. When the market is numb to bad news, make a decisive clearance sale.
When the market is numb to bad news, it means that everyone has lost his mind, the market is seriously overvalued and sold out.
6. In order to control risks, the state has introduced strict rectification measures, clearance and sale.
In order to control risks, when the country introduced severe rectification measures, it showed that the market was seriously overvalued and sold out.