Now my stock and fund investment strategy is very simple - that is, to keep buying, buying, and buying when the index is below 3000 points. In the past two years, every time it breaks below 3000 points, I rush in to buy, never hesitating.
Such a simple purchase of mine actually contains a variety of investment strategies:
1. Blue-chip stock strategy
I only buy blue-chip stocks. I never touch the concept stocks without performance support. Moreover, the vast majority of the stocks I buy are the top companies in the industry. That is, I only buy the companies with the best fundamentals in the industry. The advantage of doing this is that it can avoid most of the fundamental risks, the probability of investment success is high, and the probability of failure is very small. Because the probability of excellent companies continuing to be excellent in the future is relatively large.
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I never choose ordinary companies, and I stay away from poor-performing companies. Because such companies are too untrustworthy, and they may even be forced to delist after many years.
2. Long-term holding strategy
The reason why I dare to keep buying is that I have never thought about making a profit and selling in the short term. Every time I buy, I plan to hold it for five or ten years. The long-term holding strategy makes me not afraid of being trapped in the short term or medium term, and I dare to buy when the market crashes.
A large amount of historical data shows that the probability of making a profit is more than 95% if the holding time of funds exceeds 5 years. Long-term holding greatly increases the probability of us ultimately obtaining investment returns.
3. Asset allocation strategy
The premise of my continuous buying is that I have made a good asset allocation for my family. Deposits, insurance, houses, and my own stable cash income are the foundation for my continuous buying. These are my solid defenses, and with such defenses, I will dare to keep attacking in the stock market.4 Portfolio Strategy
My "buy, buy, buy" is a planned "buy, buy, buy." It is buying on the premise of having a well-prepared investment portfolio and sufficient risk diversification. I do not engage in full-position gambling on a single stock. Holding multiple funds and varieties can effectively control risks.
5 Capital Management Strategy
The proportion of investment in each variety is strictly allocated according to capital management and risk control. I pay great attention to the management of capital. Good capital management can control the maximum potential loss while retaining the opportunity to obtain significant profits. It prevents unbearable heavy damage in investment.
6 Profit and Loss Strategy
Among these investment varieties, some will definitely lose money in the future, and some will make money. I will follow the strategy of "making big profits and small losses" to achieve the amplification of profits and the cutting off of losses, ultimately realizing the overall profit of the investment portfolio.
7 Investment Psychological Strategy
"Long-term holding" inevitably faces the pressure and temptation of market fluctuations. How to adjust and control psychology is very important in investment. Before each purchase, I must reflect on whether I am rational and check whether the valuation data is at a low level. This prevents problems in my investment psychology.
8 Fundamental Tracking StrategyEvery year, it is essential to analyze and track the fundamentals of the invested varieties. For those with significant changes in their fundamentals, reduce the position or even liquidate it. For those with well-maintained fundamentals, continue to increase the position.
Using these strategies is not difficult; the challenge lies in understanding why these strategies are used. Stock investment is not about learning some strategies to make money. It is essential to grasp the core of investment trading to know what strategies are suitable for you to apply.
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