Fund selling skills

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Stock selling tips: Planning on selling stocks, equity mutual funds? Ask  yourself these 8 questions before exiting - The Economic Times

We all know that buying and selling in fund investment is as important , and it is even more difficult to judge when to sell the fund than when to buy. Therefore, in the investment, many people are faced with the dilemma of making profits and losses as a result. So how to choose selling points efficiently to get higher returns ? The following are three methods.

Target take profit method . Generally speaking, it is to accept it as soon as it is good. That is, when investing, you set a profit-taking goal. Once the fund rises to meet your expectations, you choose to sell. The advantage of this method is to control risks and avoid the withdrawal of rising funds due to market fluctuations or accidents. So how to set a goal? The most important thing is to determine according to the individual's risk tolerance. Therefore, you must reasonably assess your risk tolerance and not blindly overestimate it.The essence of this method is to make people make money, but they can't make a lot of money, because we have sold it before the fund really makes money. But in fact, even if the fund's rise has met their expectations, many people will not choose to stop at the funds that are still rising, but will wait and see.

Valuation take-profit method. That is, to judge whether to sell or not according to the valuation of the investment target. The usual practice is to buy in batches when the fund price is undervalued or reasonably low, and sell in batches when the fund price is overvalued or reasonably high. This method is simple and easy to learn, and has a scientific basis, which can effectively help us achieve better benefits. Many fund managers often use this method when investing.

How To Sell and Exit Your Mutual Funds Investments in 2022:… – Blog by  Tickertape

Pressure position take profit method. This is a technical analysis method. We know that technical means must not be the only basis in investment, but when judging when the fund will be sold, the use of certain technical means can play an obvious role. The judgment of pressure level usually includes moving average pressure, golden dividing line pressure, K-line judgment, etc. Reasonable analysis of the pressure level can help us judge short-term profit and sell at a high level to maximize returns. However, the disadvantage of this method is that when the fund price is obviously overvalued, most people still have a fluke mentality and think that they are not the final takeover. Therefore, although they know when to sell the fund, the inner greed always makes us have a fluke mentality, and finally the fund price falls and regret it.

When should you sell your mutual fund investments?

The above methods can be used alone or comprehensively to help us avoid the losses caused by retracement to the greatest extent. In fact, judging when a fund will be sold requires not only financial knowledge, but also a calm mind. In the face of the decline in the price of the fund, you should stabilize your mentality, or stop the loss in time to avoid the gambler's psychology; in the face of the rise in the price of the fund, you should close as soon as possible, and you can't always think about selling when the price reaches the highest point.