Dealing with the influence of index fluctuation through the fixed investment of index fund
Because of the periodicity of index fluctuation, it is often difficult for investors to grasp the buying point. In order to avoid uncertainty and mistakes in timing, we often advise investors to invest in index funds by fixed investment, and use index fluctuations and time to dilute investment costs. If we can stick to the established plan, we won't be affected by this sudden sharp drop. For those who like to vote, they will be in a good mood regardless of ups and downs. If they go up to make money, they can buy cheaper chips.
Index funds are not stupid enough to keep investing. Instead, I know how to make a profit at the right time. The stock market as a whole shows cyclical fluctuations, and index funds also show cyclical fluctuations for a long time. After reaching a certain increase, we should consider taking profit and redeeming, especially when the cycle is long enough.
Index funds should not only insist on long-term fixed investment, but also pay attention to timely take profit. We have achieved the goal of taking profits, so don't hesitate any longer. If we have achieved the goal of profit-taking, but watch the market rise day by day and are unwilling to profit-taking, it is easy to usher in the adjustment of the market in the entanglement, but we will vomit in the profitable funds.
Therefore, the discipline of fixed investment is really important.
Many people think that it is too slow to invest in opening positions and dare not step into the big bull market. The bull market is coming, and they haven't saved enough chips yet. They are not happy to see others making money. It's human nature. They like comparison. If everyone loses in the bear market, it may not be too sad.
Human nature is characterized by greed and fear, both wanting to earn as much as possible and fearing loss. You and I are mortal, and human nature is invincible. The only way is to discipline yourself. Discipline should be observed in fixed investment and discipline should be observed in making profits. The profit-taking should be resolutely stopped, and the money that should not be earned should not be earned.
Considering the quality of fixed investment indicators, the specific situation is analyzed.
The quality of the selected index is also important. First of all, you should have a very clear understanding of the index you choose.
Take the GEM index as an example. In the GEM index, pharmaceutical companies account for nearly 30%. Although these companies are defensive varieties, in this year's special environment, pharmaceutical companies have achieved high performance, which directly promoted the good performance of the GEM index.
Shanghai and Shenzhen 300 and Shanghai 50 are broad-based indexes with high stability. Generally speaking, these indexes fluctuate relatively little. If there is a rapid rise, it may be that sentence: if something goes wrong, there must be a demon.
With the favorable reform of the registration system this year and the superposition of the performance of the science and technology and pharmaceutical sectors, the growth momentum of the GEM index is very sufficient.
At this time, if you buy GEM index funds or ETFs, you can continue to insist on fixed investment or even increase the amount of fixed investment.
If you have made a profit of more than 30% and reached your own target income, you can also stop making profits, or partially stop making profits, but you can still insist on fixed investment.
For other long-term optimistic industry indexes, including science and technology, medicine, consumption and other industries, we can adopt an investment strategy similar to the GEM index.
For indexes with strong stability, such as the Shanghai and Shenzhen 300 Index and the Shanghai and Shenzhen 50 Index, it is good to strictly follow the fixed investment strategy and take profit. Don't be easily influenced by market fluctuations.