In fact, this is a question of income expectation. How to manage your income expectations?
The first step is to measure the income expectation correctly.
Most investors are attracted by making money when they enter the market. For example, they think they can earn so much by buying funds, but they have no reasonable expectation of their own income and have not considered how much risk they have to bear to earn so much. There are many types of funds, covering all kinds of risk levels, so it is impossible to generalize the risk of funds. The first step in managing income expectations is to think about your own income expectations.
The second step is to preset income expectations.
If you want to earn 50% or 80% a year, whether you can achieve it or not, you must be brave in setting it 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 revise the income expectation.
Everyone invests in different ways, and the return on investment will be different. After the polishing of the market, I know what level I can reach and constantly adjust my income expectations. According to big data statistics, the expected annualized income of stock funds is between12% and 30%, and that of bond funds is between 4% and 8%. Regarding other mixed funds with partial stocks and mixed funds with partial debts, we can weigh them on this basis.
According to the market situation, choose to take profit. For example, if you invest in a stock fund, the expected return is 20% to 30%. When you make a profit of 20%, you are not optimistic about the current market. You can choose to take profit as soon as possible, because it is an interval, so it is more flexible.
Take a profit and start investing again. If you want to expect higher returns, you may need to take higher risks or have a more professional level. Conversely, only when you have experienced it will you know what is best for you.