How does the fund decide to take profits?
1. target profit method
Target profit-taking method is to set profit-taking points according to investors' own profit expectations, such as 20%, 30% and 40%. And then sell it after reaching the profit target. This method is the simplest way to make a profit. Some platforms have automatic profit-taking services. Making a fixed investment plan can set a take profit point, and investors do not need to stare at the market. After reaching the target point, you can automatically take profit. Simple and convenient. But this method also has some shortcomings, that is, it is too mechanical. When the market is hot, you can quickly achieve the goal of making a profit by fixed investment, and you can't earn the rising market. If the market does not perform well, it may take a long time to achieve the goal. The setting of profit-taking target is also crucial.
2. Dynamic profit method
This method dynamically adjusts the take profit point according to the upward trend of the fund. For example, if the market is good and the fund returns are gratifying, investors can set a profit-taking point first, and then raise the profit-taking point appropriately after reaching it, and so on. If the rate of return drops to a certain value, stop profit and sell immediately. This method is more flexible. However, there are certain requirements for investors to judge the market, and at the same time they need to pay close attention to the market frequently, which is not suitable for small white investors.
3. Maximum withdrawal method
The maximum withdrawal method is essentially a dynamic profit-taking method, which also needs flexible adjustment. The specific operation mode is: set the maximum withdrawal value after reaching the target profit point. After reaching the profit-taking goal, it will not stop profit immediately, but continue to hold it. When there is a correction in the market and it falls below the maximum retracement value set at the beginning of the year, take profit and redeem it. In this way, a unilaterally rising bull market can get higher returns than expected.
4. Valuation profit method
The most important thing of this method is to refer to the valuation of the fund, which is more suitable for index funds and has obvious income effect. Refer to the historical valuation of the fund, buy more when the valuation is low and buy less when the valuation is high. When taking profit in this way, it should be noted that a high valuation does not mean that it will not rise. You can consider taking profit in gradient and selling it in batches.
5. Large-cycle profit-taking method
This method requires the highest degree of professionalism of investors. It is necessary to understand and master the stock market cycle and make long-term fixed investment, even if there are fluctuations in the middle, and wait until the bull market peaks before making a profit.
Generally speaking, the way to make profits from fixed investment should be chosen according to the actual situation. Among the above methods, the first method is relatively simple and suitable for many ordinary investors. Fixed investment is a simple and effective investment method, and it is a good choice for investors with weak investment ability. However, the premise is to choose high-quality funds to vote, and high-quality funds can be screened from historical performance, fund managers, risk indicators and other dimensions.
Finally, remind investors that the fund is risky and investment needs to be cautious.