The first trading day in p>221 got off to a good start. After three years, the A-share market returned to 3,5 points. The voice of the bull market, one after another. Investors began to hesitate. Buy it, for fear of falling after buying it; Don't buy it, for fear of missing this bull market. Everyone knows that A-share bulls are short and bears are long. I don't know, this hesitation missed the good momentum. What should we do? It's 35 o'clock. Are we going in or not?
this question is actually predicting the future trend of the stock market. However, in terms of the accuracy of prediction, no one is a ever-victorious general. The simplest way is to keep in awe of the stock market, give up forecasting, and rely on scientific methods to reduce risks and improve the winning rate. Among them, the easiest way to operate is to make a fixed investment: that is, to invest in the designated open-end fund with a fixed time and a fixed amount and automatic deduction. For example, every week, or every month, invest in 1 yuan or other fixed amount and buy a fixed fund.
Because the number of copies = amount/net value, the amount we buy is the same every time. When the net value goes up, we buy fewer copies. If it falls, it will buy more copies. It conforms to the principle of buying low and selling high. The cost of the whole investment period has been diluted, and when we sell it at a relatively high position, we can get better returns.
There is a saying in the financial circle that "it is more difficult to step on the market accurately than to catch a flying knife in the air." ? Fixed investment, let us no longer have the confusion of timing, and reduce the risk by sharing the investment cost equally. Fixed investment can overcome the greed and fear of human nature, and let us stay calm and not follow the trend when the stock market is crazy; When the stock market oscillates to the bottom, it will not give up and escape, and it will miss the good opportunity of "hunting the bottom". Fixed investment operation method is relatively simple, so it is also called "lazy investment method".
if you invest by fixed investment, you don't have to worry about whether the market is 3,5 points, 2, points or 6, points. The more volatile the stock market, the better the effect of fixed investment will be. With a fixed amount of investment, it is mandatory to buy low and sell high. Over time, many a mickle makes a mickle, and the average buying price will be lowered. The only thing we need to worry about is to choose a good investment target, an investment target that will not let us have the risk of total loss of principal when the stock market plummets. And this target is the index fund, that is, buying a basket of stocks the same as the index.
index companies will select stock composition indexes according to clear rules. For example, the star index "Shanghai-Shenzhen 3", which best represents the A-share market, is composed of the Shanghai and Shenzhen stock markets, excluding some stocks that have financial problems and losses, and have been listed for less than a quarter, and then ranking the remaining stocks according to their scale and liquidity, and selecting the top 3 high-quality stocks to form an index. The index is also like a leaderboard.
Just like the top three students in the class, their grades must be better than the average grade of the whole class. If we buy the top dozens or hundreds of the best listed companies, we can beat the average profit level of all listed companies in the stock market with great probability.
In the stock market, it is often a few star companies that drive the profit of the whole market. William Bernstein, a famous American financial and economic history biography and financial science writer, once counted: since 1926, all the investment returns in the American stock market have come from the best-performing 1, stocks, and these 1, stocks only account for 4% of all listed companies. However, most of these star companies appear in the index list. Among many stocks, it is really difficult to pick 4 out of 1 and 4% of that star. But if we buy an index, we can always bet on Zhongbao.
most people greatly underestimate the difficulty of picking a good stock. Because of information asymmetry, we can't understand the real information of many companies. Moreover, the market is ever-changing, and companies that are profitable at the time of purchase may soon encounter setbacks.
Take the US stock market as an example. Of the 5 companies in the S&P index in 1957, 4 years later, only 74 companies still exist in the index. The other 426 companies have either closed down, been merged and acquired, or have failed to enter the ranking of the S&P index. Those star companies that have shined in the past history, such as Nokia, Siemens, Ericsson, and Sk, have now been left far behind by new companies.
By buying index funds, we don't have to worry about the risk of bankruptcy or black swan. First, when the index selects stocks, it will not choose companies with losses and financial problems. Companies that have been doing well will also be kicked out of the index when their operations turn bad and they no longer meet the selection criteria of the index. The companies in the index have changed from batch to batch, but the index is always there. Secondly, if some unexpected risks break out in a short time, even if it has a disastrous impact on individual stocks, the index fund contains dozens or hundreds of stocks, and the fluctuation will not be so great.
therefore, even if the market falls, we don't have to worry, because there is no risk of bankruptcy of individual stocks, and we can always wait for the time of correction. Through the fixed investment, the market will fall, but it will allow us to buy more shares at a lower price, which is a good opportunity to slowly bargain-hunting.
what rises is risk, and what falls out is opportunity. Fixed investment in index funds makes us invincible. It's a good time to start at any time without worrying about how many points in the market.