Dudu 096 index fund fixed investment, slowly become rich - excerpts (2)

You can never make money beyond your knowledge!

5.

(1) The low-valuation fixed investment strategy is an index low-valuation fixed investment based on Graham’s margin of safety theory and diversified investment theory. Index funds' undervalued fixed investments mainly rely on three aspects to make profits: the first aspect is corporate profit growth, the second aspect is valuation upward movement, and the third aspect is dividend distribution. When using the undervalued fixed investment strategy, you need to adhere to the margin of safety principle, control reasonable positions, grasp the rhythm of fixed investment, and do not stop losses.

(2) The moving average fixed investment strategy is a short-term swing strategy used in a bear market when the index is in the undervalued area and based on the degree of the index deviation from the moving average. That is, when the index deviates below the moving average, it is gradually bought. Gradually sell when the index deviates above the moving average.

(3) The grid trading strategy is also called the fishing net strategy. This strategy is to divide the investment funds into n equal parts during the bear market shock period, and then establish a bottom position when the index fund is relatively low, and continue to Realize buying low and selling high.

(4) Investors should focus on underestimating fixed investment strategies and establish main positions in fixed investment index funds. At the same time, when the index fund is in a bear market shock, use side positions to conduct moving average fixed investment or grid trading. In this way, investors can make considerable profits regardless of whether it is a bear market or a bull market.

6.

(1) "Everything will be successful if it is forewarned, and it will be ruined if it is not forewarned." Formulating a fixed investment plan is the first step in fixed investment. A complete fixed investment plan includes five aspects: the first is to determine the amount of fixed investment; the second is to determine the frequency of fixed investment; the third is to determine the target of fixed investment; the fourth is to determine the buying and selling principles; the fifth is to determine the frequency of fixed investment. Write your fixed investment plan on paper, and then make it into an Excel spreadsheet to record your profit and loss and each of your buying and selling operations.

(2) The index fund initial fixed investment plan is also called the novice fixed investment plan. Investors who have never been exposed to securities investment or bought and sold funds or stocks should first formulate a novice fixed investment plan before making fixed investment in index funds, and then make a comprehensive allocation after learning the most basic knowledge of fixed investment. The novice fixed investment plan is suitable for choosing an over-the-counter independent sales agency for fixed investment.

(3) Existing funds refer to funds in the account that have not yet been used. This is the main source of funds for investors to invest in index funds. When investors have understood the principles of index fund fixed investment through the novice fixed investment plan and achieved a certain degree of income, they can further learn the existing capital fixed investment plan. The fixed investment plan for existing funds is suitable for fixed investment on the market.

(4) Incremental funds mainly refer to the balance of investors’ monthly income. The incremental capital fixed investment plan can be an on-exchange fixed investment or an over-the-counter fixed investment. In order to distinguish it from the on-exchange fixed investment of funds, investors can add a new off-exchange incremental capital fixed investment account.

(5) When investors invest, they will not only have existing funds and incremental funds, but also unexpected funds, such as house demolition compensation, etc. When investors receive this unexpected capital, they need to formulate a fixed investment plan for the unexpected capital. Unexpected funds are often uncertain, and investors need to determine the period for fixed investment of unexpected funds based on current market conditions.

7.

(1) Investors should use the balance sheet to sort out their family's asset status and determine their family's net assets and available cash.

(2) Investors should learn to keep accounts, use the four accounts of defensive account, daily account, stable account and offensive account to allocate funds and determine the amount of funds that can be used for fixed investment.

(3) After determining the frequency of fixed investments and the amount of each fixed investment, investors should make fixed investments based on the index valuation within the margin of safety.

(4) Harvest profits when the index fund valuation is normal: gradually sell account profits as the net value of the fund increases.

(5) There are two ways to stop profits: one is the profit harvesting method plus the gradual liquidation method of overvalued areas, and the other is the stock-bond rotation method.

(6) The 16-character policy of Ershifu's fixed investment is: comprehensive allocation, underestimating fixed investment, normal harvesting, and overestimating selling capital.

8.

(1) Markowitz’s portfolio theory tells us that the significance of allocating portfolio investments is not to increase the rate of return, but to increase the rate of return at a determined rate. Under the goal of minimizing the risk of the investment portfolio, that is, ensuring the safety of the investment. Risk prevention and control comes first, while investing and making money come second.

(2) The undervalued asset rotation portfolio is an investment portfolio that always focuses on buying undervalued high-quality assets, that is, constantly selling overvalued assets and buying undervalued assets.

(3) In the A-share market, the Shanghai Composite 50 Index is the representative of the large-cap blue chip index, the CSI 500 Index is the representative of the mid-cap stock index, and the GEM Index is the representative of the small-cap stock index. These three indexes do not rise and fall simultaneously. Investors need a balanced allocation to achieve the rotational rise and fall effect of the large, medium and small-cap indexes.

(4) Investors can use reverse thinking to invest in industry indexes based on the performance of different industries in different economic cycles, so that when the spring of the industry arrives, they can obtain excess returns brought by industry rotation.

(5) Global asset rotation allocation requires investors to identify the cycles of different stock markets and cycles of different sectors, and start allocation when the market cycle and sector cycle are at a low point.

(6) Investors who want to achieve compound interest appreciation of assets through investing in index funds need to invest in high-quality, long-term profitable index funds. Such index funds mainly focus on financial services, major consumption, Optional consumer, pharmaceutical and other industries. Choice is more important than hard work. As long as you choose the right direction and continue to accumulate in the right direction, you can achieve the compound interest and value-added effect.

9.

(1) Although the Second Master’s fixed investment philosophy is just some very empty philosophical thoughts, it is the most necessary knowledge and literacy in the investment process. Because in the end when you invest, you will find that you are not competing with other investors at all. What you need to overcome is your own human weakness. Whoever can overcome his own human weaknesses can achieve great success in the stock market.

(2) The Second Master believes that fixed investment cannot be limited to equity assets such as index funds, but should cover all aspects of life. Fixed investment in index funds is to make investing easier, and fixed investment in all the beautiful things in the world is to make life better. We should apply the thinking of fixed investment to all aspects of life, such as fixed investment in index funds, fixed investment in health, fixed investment in wisdom, fixed investment in interpersonal relationships, and fixed investment in pattern, so as to realize compound interest accumulation for our own life, so that you will have a different life.

(3) Investors should choose targets with long-term compound interest growth, and then continue to persist and cultivate deeply in one direction, slowly accumulating, and achieve single-point breakthroughs.