The first one: one-time purchase strategy.
After choosing the right fund, choose the right one-time purchase. This strategy has a high risk coefficient and requires the highest professional ability of investors. It requires strong timing ability and investors' ability to accurately grasp market trends and entry opportunities. This strategy has the greatest profit-making effect in the bull market with unilateral rise. If you want to get better returns, you must ensure that you can enter the market at a low level. However, judging the market is the most difficult part. This way is not very good. If you are sure of your professional ability, you can try this strategy.
The second type: the strategy of buying in batches
Divide the funds to be invested into several parts and buy them in batches. For example, after choosing a good fund, invest 30% first. If the fund falls 10%, invest 30%, and then invest 40% when the fund falls 10%. The downward floating interest rate, investment share and frequency set here can be adjusted. You can also choose to drop 15%. In the fluctuating market environment, this strategy can play a very good role in dispersing risks and giving consideration to benefits, and it is the most suitable strategy for fluctuating markets.
The third type: pyramid buying strategy
The pyramid buying strategy is similar to the bulk buying strategy, but the pyramid strategy will increase the investment share with the market decline. For example, the market fell 10%, and after the funds increased by 20%, it fell 10%, adding 30%, and then fell again, increasing the last 40%. The pyramid strategy perfectly embodies the idea that fund investment falls and buys more. In the market environment of unilateral decline, that is, in the bear market, pyramid buying strategy can achieve the best profit effect.
These three strategies also have different shortcomings in different market environments. For example, in a bull market, if there is no correction in the unilateral rise of the market, there will be no chance to buy in batches and increase positions by pyramid strategy, resulting in lower positions and inability to enjoy higher returns. In a bear market, one-time investment will suffer the greatest loss because of the decline of the market.
Each strategy has its advantages and certainty. To adapt to different market environments, investors also need to cultivate a pair of critical eyes and see the truth of the market clearly.