Funds need to take profit and stop loss. By setting profit and stop loss, we can control the capital risk, ensure the safety of investors' funds to the greatest extent, reduce losses and improve the survival rate. Among them, investors can set profit and stop loss according to the following methods:
1, target rate of return takes profit and stops loss.
Target rate of return take profit and stop loss. Generally speaking, investors set the profit and stop loss range after purchasing the fund. For example, if they lose 5%, they will not sell, and if they increase 10%, they will not sell.
2. Take profit and stop loss at pressure level and support level.
Investors combine the trend of the fund to find out its recent high level and regard it as a pressure level. When the net value of the fund rises near the pressure level and turns head down, they will take profits and sell their funds. On the contrary, when the fund falls below the support level, they will stop immediately.
3, P/E ratio take profit and stop loss
Investors can refer to the price-earnings ratio of fund-related indexes to take profit. When the index is at a historical high, investors can consider net profit-taking or stop-loss operation.
4. Control the maximum cash withdrawal, take profit and stop loss.
Control the maximum retracement and take profit, that is, on the basis of the target rate of return, set the maximum retracement threshold and observe the signal line of take profit, but every day. Only when the maximum retracement falls below the threshold, take profit and sell, otherwise, stop loss is out.
5. Valuation take profit and stop loss
When the valuation of the fund is at a high historical valuation, investors can consider taking profit or stopping loss.
When trading funds, investors can control risks by diversifying their investments and reasonably controlling their positions.