Stop loss and take profit is an unavoidable topic in investment, so is the fund. The purpose of setting them up is to protect the principal and profits.

Let's talk about "stop loss" first-many people will ask whether the fund should set a stop loss target for its fixed investment. Stop loss is necessary, but it is rarely triggered in the form of fixed fund investment, because fixed fund investment is not a short-term thing for one or two years, but a long-term investment, and it takes time to continuously obtain low-cost "business".

Since it is an investment, it is impossible to have no stop loss at all, so the stop loss point of general funds is relatively low, so that the core role of cost allocation will not be lost. By constantly stabilizing fluctuations, crossing the bear market and acting in the bull market.

Then why make a profit? Think about it, in the case of rising market prices, the monthly fixed investment will gradually increase the investment cost, which is equivalent to high positions. Once the market reverses downward, profits will be greatly reduced or even turned into losses. Therefore, profit-taking mechanism should be used to avoid this situation.

So, when should we make a profit?

Most profit-taking methods in the market are to set their own profit targets, and you can redeem profit-taking according to your own situation.

Human nature is greedy. If you are afraid that it will be difficult for you to implement it, you can also use the market value target method to quit.