In the bull market, can we get the highest profit? As investors, we naturally want to maximize the income, but the question is whether we can get the highest income?
When investing, we choose to invest in undervalued regions and buy in batches. For example, when a fund entered an undervalued region when its net value was 1 yuan, we started to invest. The fund's net value fluctuated continuously in the undervalued region, reaching as low as 0.6 yuan. Our way of buying is to stick to fixed investment rather than one-time buying. In this way, our average cost rate will be about 0.7-0.8 yuan, and the overall cost is in the underestimated area, but it is difficult for us to buy all at the lowest point.
Similarly, when the index fund is overvalued, we also sell it in batches, so that our overall selling area will be in the overvalued area, and we will earn most of the earnings of the bull market, but it is difficult to sell all of them at the highest point, and it is risky to earn the part of the earnings at the top of the final bull market (it is very likely that we will only lose half of the profits), So don't make any profit. What we need to ensure is that we can earn the profits we can safely earn.
