Which is the best insurance investment option

Stock Market Knowledge: Golden Section Method and Trend Investment Plan Adjustment Method

What is the golden section? This is a diversification strategy. The operation requires investors to split the funds into two parts: one for stocks that are riskier but also more profitable; the other for bonds that are relatively less risky but less profitable. This ratio takes into account the allocation of funds at the 4: 6 level. This ratio is about 0.618, which is about 62% of the best point of the "golden section" principle "in mathematics, it is called the golden ratio method.

That way, investors are more stable. They put more than half of the capital into the bonds to help secure income during the drought and flood. Only a small part of the capital is used for stock investments, even if it fails, it won't hurt. Psychologically also has a sense of security that is equivalent to an insurance investment option. At the same time, for reasons of stability and security, we will not take the greatest possible chance of profit .

The Golden Section method can be used by investors who are more conservative.

What is the Trend Investment Plan Adjustment Method? If investors want to make long term investments, they should investigate the Trend Investment Plan Adjustment Method.

The basic premise of the trend investment plan adjustment method is to identify a trend that will last for a long time, so after buying the stocks in accordance with the trend in stock prices, investors should keep their position in the market and not give up at will because of small waves . Only when stock prices are trending down can they sell their stocks and buy stocks when the stock market improves.

Trend planning focuses on market-driven trends; once the big trend is identified, it will not be affected by the small short-term fluctuation in the stock market. If the trend forecast is correct, the stock return will be rich. If the development of the stock market is misjudged, the loss of investors will not be small if they blindly follow the trend investment planning method of buying and selling; second, although the trend calculation is correct, investors are disturbed by the short-term fluctuation and the troops will be withdrawn too soon and the maximum profit will not be realized.

Hence it is very important to assess the general trend. Sun Tzu's art of war advocates "the winner is the potential". The interpretation of the potential is as follows: "Planning profits through virtue is to protect the potential outside" and "potential means of controlling power through profit". That is exactly what investors mean.

The change in the share price is the basis for investors' decisions. If investors want to find their own solid star in this series of virtual and real changes, they need to gain their own experience, turn knowledge into wealth, and apply it flexibly to the market.

What is the variable proportion investment method? Also known as the variable proportional planning method, the variable proportional investment method is an investment method that evolved from the fixed proportion investment method. It allows the proportion of stocks and bonds in the portfolio to change with price fluctuations. It is basically an extensive application of the 10% investment method and the 50% investment method.

The variable ratio investment method does not require that the ratio of stocks to bonds must always be kept in a fixed ratio; if the stock price rises above a certain level, they sell stocks to decrease the proportion of stocks and to increase the proportion of bonds increase; if the stock price falls more than a certain level, they increase the equity portion and decrease the bond portion.

The basis of the variable proportion investment method is the determination of the expected price trend line of an act. If the price is above the trend line, the inventory is sold. If the price is below the trend line, the inventory is bought. When the stock is traded, the bond will be bought and sold accordingly. When setting the trend line, the decision line should be used as a supporting role for the stock trading. When the stock price rises, 50% of the stock will be sold, and 10% of the stock will be sold, as soon as they cross the decision line. Similarly, if the stock price falls just above the decision line, buy 10% of the act, and if it falls further below the decision line, buy 50% of the act.

It should be noted that there are two decision lines that run parallel to the trend. The highest rising point is the top line, and the second higher level is the bottom line; when the stock price is falling, the lowest is offline, and the second lowest is online.

The variable portion investment method is flexible and sensible, but the disadvantage is that it is difficult to find the right trend line according to different situations and monitor the price change and adjust the investment percentage at any time. For most investors, the flexible investment percentage adjustment is based on predicting the price trend.

What questions do you need to think about before buying stocks?

The stock market is influenced by various factors. Under the stimulation of some unpredictable unexpected news, the stock price fluctuates abnormally beyond investor expectations. Often, investors buy stocks that do not rise but fall sharply. Before buying stocks, investors need to think about the following questions:

(1) What are the reasons for buying this stock?

(2) Is this portfolio short-term, medium-term or long-term?

(3) Do you buy and sell stocks as high as you expect them to go up?

(4) If you buy this stock, if it doesn't rise but fall, how much will you be willing to ask?

Only when we clearly understand these issues can we determine how much money we are investing and making the preparations. That way, we won't be blind to investing in stocks. Even when we encounter complex problems, we can calmly face them and address them calmly.