Setting price targets and portfolio goals in investing may not be the best strategy for the following reasons:
In the last market cycle, many people, including myself, had expectations for a specific number. For example, Bitcoin reaching $100,000, or achieving portfolio goals of $100,000, $1 million, and so on. While these numbers can provide direction for investments, the market does not cater to your personal goals.
To achieve these numbers, many people have invested too much energy and funds, neglecting the actual market trends. It has proven unwise to pursue a numerical target in your mind while ignoring the risks of market changes.
In contrast, the following two strategies may be more worth considering:
Maintain flexibility: If you expect the market to deliver 10 times your investment, but when you reach 4 times, the market shows signs of peaking, it is wise to take profits at that point. Sticking to "must reach 10 times" and betting everything will cause you to miss the opportunity to exit in time. Rather than waiting for your profits to vanish, it's better to take profits at the right moment, even if it means missing out on further gains.
Step-by-step profit strategy: Set a gradual exit plan for each investment project. For example, when an asset rises by 50%, consider cashing out part of your position to ensure some profits are locked in. Through this gradual exit approach, you can continue to participate in a rising market while also ensuring you gradually lock in existing profits.
As market cycles develop, you can adjust your profit strategy based on the market stage, becoming more proactive rather than passively waiting for the so-called "ultimate goal." Judging which stage the market is in and adjusting your investment strategy accordingly is more realistic and effective than sticking to an arbitrarily set numerical target.
Setting goals itself is not wrong, but these goals should be dynamically adjusted based on the actual market situation. If you do not respond flexibly, investing is like playing the lottery, relying on luck rather than strategy.