Because you are buying an index fund, you can safely add to your position in the special situation of a sharp drop. The more the index fund falls, the more you buy. Even if the market falls below 2800, 2700 or even 2500, there is no need to worry. .

Index funds will never explode like stocks, they will always rise slowly. Choosing the opportunity to add positions during the decline can greatly reduce costs, and then wait for the situation to reverse and rise until substantial profits are made.

Extended information

Add positions

One is the extremely rapid decline method. If the market falls to 4 points in one day, it is extremely fast.

One is the slow decline method, which increases positions based on the proportion of fixed investment and floating losses. For every 10% floating loss, you can add twice the base amount, and so on, in a step-by-step manner. However, if there are repeated crosses, such as -13% to -10%, do not add any more.

According to your own financial pressure, you can also start when the floating loss is 5%, and the multiple of adding positions remains unchanged. Or when the market is in a volatile upward trend, you can also start from 5% to avoid missing the opportunity to add positions if the market is not large enough.