Maximum retracement refers to the biggest decline in the yield of fund products in a certain period, which is a risk indicator. Controlling the maximum cash withdrawal and take profit is to set the threshold of maximum cash withdrawal on the basis of the target rate of return. When you reach the target rate of return, you will not only redeem the profit, but continue to hold it. You will encounter two situations:

First, the fund continues to rise, continue to hold, and obtain income higher than the target income;

The second is to set a cash withdrawal rate, such as 10%. If the holding fund withdraws 10%, it will be redeemed immediately, and the final rate of return will be less than the target rate of return, and this 10% is the preset maximum withdrawal threshold. This method can solve the problem of taking profit and redeeming in advance and missing the market outlook, which is more suitable for rising prices.

The second type: valuation method.

Index fund is the most commonly used fund for fixed investment. In some ways, we can judge whether the index is cheap or expensive by the superficial figures. Whether the current position of index funds is worth investing mainly depends on the valuation. Buy more when the valuation is low, and buy less when the valuation is high. In fact, valuation is also an important reference standard when selling funds. Sell when the valuation is high and keep it when the valuation is low.

The commonly used valuation index is mainly the price-earnings ratio. We can measure whether the current index is overvalued or low by comparing the price-earnings ratio of different industry indexes or comparing the historical level of the same index. The general observation index is percentile, which is mainly used to indicate the position of price-earnings ratio in historical interval. For example, 80% means that the current P/E ratio is higher than 80% in history.

The third method: 12 10 take profit method.

12 10 take profit method is to specify not to take profit for 12 months before investment, and not to take profit for 12 months before investment. The reason is that the amount invested in the first 12 months is not much. For example, suppose each of you invests 1000 yuan. Before 12 months, our aim is to accumulate enough shares and invest enough funds.

10 refers to the target rate of return, which refers to the annualized rate of return 10%. The yield is related to time. The longer the investment time, the higher the required rate of return. For example, if you invest for one year, the required target rate of return is 10%, and if you invest for two years, the required total rate of return is 20%. What needs to be emphasized here is that this 10%. For different investors, there may be different goals, all of which are ok.

There is an important point in 12 10 take profit method. We should go to see it at the end of every month, not every day. If you reach the rate of return at the end of each month, you can consider quitting. Why do you want to see it at the end of the month? Because we can grasp the situation of the month at the end of the month, we should pay attention to it.