The recent surge in the stock market can indeed easily cause people to lose their mental balance. The three major US stock indices are all rising, with the Dow hitting new highs, and the A-shares are not willing to be outdone. But do you know? Sometimes, it's actually a test of your mindset.

Many people start worrying about risks when they see the market's significant gains, even developing a fear of heights. Over the past decade, the overall increase in the stock market has been limited, and occasional rises of a few hundred points are treated as a major threat. Actually, this is a misconception — the market isn't that fragile, and there is still room for growth. The key is not to be scared by short-term fluctuations and to take profits when they are available.

For individual stocks, now is the startup phase. For example, China Satellite's recent move from the 20s to over 110 is a typical case of "when the wind blows, even pigs can fly." Chengjian Development hit two consecutive limit-ups, and five limit-ups are not impossible. But there's a prerequisite — you need to set a clear take-profit point. Planning for a 20% return at the market level is fine, but for individual stocks, you can be more aggressive, considering 50% or even higher.

But on the other hand, while these gains are tempting, you must also be cautious of risks. Individual stocks have already risen to this level, so be prepared to take profits when the time is right. Greed often appears at such moments.