ETF Investment Strategies - Long-term Fixed Investment Strategy

I. What is a long-term fixed investment strategy?

A long-term fixed investment strategy is a type of long-term investment, which is the core concept of executing scheduled fixed investments over a longer period of time. For example, it is a strategy to invest once every 2 weeks or 1 month in order to generate investment income. Unlike long-term investments, which are bought at once, long-term fixed deposits emphasize the need to invest on a regular basis, taking advantage of the opportunities in the investment in a regular basis. to smooth out fluctuations; and since the average investor is in the monthly wage earning bracket, it's just as well to follow a regular monthly fix. Implementing a long-term fixed investment strategy is especially suitable for everyone.

In addition to fixed investment is suitable for the working class, long-term fixed investment strategy is also the best strategy from entry-level ordinary investors to senior stock market playmakers, all will have good returns in the long run.

2.The essentials of a long-term investment strategy

The principle of long-term fixed investment strategy has just been communicated to you, I believe you should be able to understand, then the long-term fixed investment specific should how What about it? I've also summarized a few essentials here for your reference and action.

The first key point is to choose a track that is stable and upward over the long term. Just like the example I just gave, consumer and medical are good industries for long-term stable upward movement; with the rise of national per capita income, people are more interested in The quest for quality of life and quality of life will increase the incremental demand for consumer and medical care, especially for quality consumer goods and Targeted medical growth rates will continue to accelerate; and investing in such a long-term stable upward track is considered a win from the start.

The second imperative is best started when the stock market is low. This is easy to understand, as you can see how many stocks haven't gone back to the stock market high of June 12, 2015, or even the stock price Or is it a waistline? So, slowly fixing investments in the later stages of the bear market, and slowly fixing investments in the lower levels of the index, is the second imperative.

The third essentials, strict implementation of the regular fixed amount of discipline. When an investor establishes the discipline of regular fixing, he must adhere to it and invest a relatively fixed amount of free money at a relatively fixed time. It is important to avoid increasing the frequency and amount of fixed investment when the stock market rises, and decreasing the frequency and amount of fixed investment when it falls, which also indirectly The catch-up often drastically reduces the return on the investment.

The fourth imperative is to be patient. In the process of long-term fixed investments, it is very likely that the initial phase, say 6-12 months, will not yield high returns, or even phase for the Negative values, this is the time to stay calm, strictly execute the established fixed investment plan and never stop the fixed investment. Also, due to the strategy of adopting a long-term fixed investment, the returns may not look that high, but due to the strategy of adopting a long-term fixed investment, the returns of the The absolute amount is actually not that low.

3.Long-term fixed investment profit and stop loss

As the saying goes, there are in and out is business, just communicate with you to exchange long-term investment strategy, then also missing one, is to sell the essentials, mainly profit, but also including stop-loss, under the heavens, no one can just earn not lose, we have to do well from the strategy to deal with.

The first essentials, encounter mad cow to be willing to sell. Long-term fixed investment is not foolish always fixed investment, when the market into the overall high valuation environment, fixed investment is to suspend even to sell! The historical reference value for this valuation is around 22 times, and the whole market is only around 14 times right now, and by the time the whole market is valuing After the lift, you must be willing to sell.

The second important point, the industry logic changes to be willing to sell. In the process of investing, perhaps we will encounter things where the industry logic has fundamentally changed, such as new energy vehicles versus traditional cars' Alternative, if someone is set to invest in an auto industry related ETF then this is the time to sell.

The third important point is to be brave enough to sell if you find out that you bought wrong. Many friends, without guidance or professional training, buy very casually at the beginning of their investment, but being set up to After losing money, but you are not willing to sell, you always want to continue to set your investment and sell it when it goes up in the future to unwind. The correct approach is to be brave once you are convinced that the ETF you invest in is not your favorite, much less an industry that can continue to rise. Selling.