First, the more you fall, the more you buy.
1, for the purpose of building positions in batches and sharing costs.
2. In the process of the bear market falling or the stock price bottoming out, "buy on the left", then the margin of safety is constantly improving.
Benefits of bulk purchase:
First, if you are interested in a company and have studied it for a long time, you can take a small written test to test the water. Because when you invest in it, you will be in an "incoming" state of mind, and then you will really pay attention to and analyze this company and appreciate the taste-the fear of human nature and the fun of the struggle between greed and reason. At this time, the risk of the first written test is the greatest. With the passage of time, you will have a deeper understanding of the company and reduce the risk. You can quickly withdraw your stop loss when you find yourself making a mistake.
Second, if the price continues to fall, the cost will be shared equally and the margin of safety will continue to increase. After that, even if there is a big fluctuation, because the cost is low enough, the tolerance for losses will be greater, and you can "hold" without panic.
Of course this method is also advanced.
First, I should have enough "strength" to have a deeper understanding and understanding of the market and this company. Otherwise, if you continue to buy poor companies in the bear market, you may fall into a bottomless pit and the cost of inhalation will be higher and higher.
Second, the stock market is changing rapidly. In fact, the company you are optimistic about will not keep falling, but will be in the shock stage of "down-up-down-up", so you may never wait for the set psychological price, so when you meet an excellent company, you will miss the opportunity.
Second, the more you go up, the more you buy
1, many compatriots use this strategy invisibly. When they see which stocks are rising, especially those with several daily limit boards, they will flock to them. This is the psychology of "pursuing wealth+conformity". In the bull market, if you throw this strategy in time, you can get considerable benefits.
2. Throw a stone and ask for directions. First pass the written test to verify whether your judgment is correct, and if it is correct, double your investment in time; If the trend is unexpected, it means that the judgment is wrong and stop loss in time. This point lies in the subsequent additional investment and trend evolution. If the situation is not good after the investment, it is likely to be stuck or a strong man will break his wrist.
Third, fixed investment.
The premise of this strategy is to admit that you can't judge the change of stock price. Because the plan is set to invest a certain amount of due funds, it is not affected by market sentiment and its own emotional fluctuations. At the same time, it can reasonably match its cash flow, Qian Duoduo investment and less money.
Fixed investment will diversify investment positions in a timely manner. When the valuation is high, the purchase share is small, and when the valuation is low, the purchase share is large, which can effectively share the cost and spread the risk. Of course, because the time is prolonged, the fluctuation of stock price is ironed out, so the average income will also drop.
When I first entered the stock market, my account manager always recommended fixed investment funds to me. When I saw that my investment generally has a return of 3-5%, but the return of the investment fund is only 1-2% or even a loss, I didn't care too much. A few days ago, I found that some funds did have a floating profit of less than 1%, but there was also a floating profit of 12%, which was about 6%. It's only been less than three months, and the comprehensive risk and almost no time and energy are spent on it, and the income is still considerable. So next week, I will start preparing for a new vote.
Fourth, hedging is balanced.
Allocate a certain proportion of stocks while holding bonds, and sell bonds to buy stocks when the stock price falls; When the stock price rises, sell stocks and buy bonds. Hedge each other through dynamic balance.
We are talking about position management, not stock selection, so any one has nothing to do with stock selection. This can't make us get the maximum benefit, but it can effectively reduce the risk and get good benefits.
Finally, warning everyone is also warning yourself that the stock market is risky and you need to be cautious when entering the market. Continue to eat meat, strength is the hardest core.