Get a profit target and get a profit
We can set a target rate of return according to the general situation of the market, and make a profit in time when we reach the income. Different market conditions are divided into bull market and shock bear market.
In a bull market, the target rate of return can be set at several levels, the first rate of return reaches 30%, the second rate of return reaches 20%, and the third rate of return reaches 10%. In a bear market or a volatile market, the probability of fund losses is very high, and it is also possible that the fund has strong resilience and can gain income from fluctuations, but at this time, the target rate of return should be appropriately smaller, such as 10%.
Make a profit according to the level of income extraction
This method is suitable for high-quality and volatile funds, that is, the performance of the fund greatly exceeds the average level of similar or corresponding indexes. Similarly, we need to set a target rate of return, such as 30%, and the next rate of return will reach the highest level of 40%, and then drop by 5%. If the extraction standard you set is 5%, you can make a profit at this time.
Profit according to the valuation level
This method is more suitable for broad-based index funds, which determine the profit-taking position according to the valuation level of the index, underestimate the fixed investment, stop the fixed investment normally, continue harvesting in batches with high valuation, and overestimate the profit in batches.