In the process of chasing market trends, it is necessary to set profit goals based on changes in market conditions. When setting goals, the specific environmental characteristics of the market should be taken into account, starting from the actual situation of the market, understanding the fundamental nature of the market, roughly distinguishing the type of market, analyzing the upward attack power of the market, and ultimately determining profit goals based on these factors. When reaching the profit target, it is important to firmly stop winning, which is a means to overcome greed and control excessive pursuit of gains.
Due to the relatively high risk involved in chasing after a stock, it is particularly important to control the risk. Once the trend repeats or individual stocks experience stagflation, it is necessary to ensure that one can immediately exit unscathed. This requires investors to master three investment principles: