1. Original text (see picture)
2. WHAT
Full text view: What is fixed investment strategy and its effectiveness. In "Determined Investment Changes Destiny", it is equivalent to the WHAT of the whole book and dominates the entire article. The subsequent chapters will describe other aspects of the fixed investment strategy one by one, thus forming a "total-point-total" context structure.
2. WHY
This article proposes and explains the concept of fixed investment strategy, and then raises the question: "Is such a simple strategy really effective?"
Then the article solves this problem from the following aspects:
1. The most reliable way to speak is with data. The author shows the historical trends of the S&P 500 and Bitcoin, and cites examples to prove that users of fixed investment strategies can always make early profits even if they enter the market at the worst time.
2. The core mechanism why the fixed investment strategy is effective is that this strategy is consistent with the real situation of the real world: a bear market is longer than a bull market, and it is much longer.
case enumeration: In the past 1,000 days of the blockchain digital trading market, only about 150 days were bull markets; the same is true for stocks such as S&P 500, Coca-Cola , etc.
It is precisely because the bull market is very short that it is the most essential reason why most people are doomed to fail in investment, because they always jump in when they see others making money in the bull market. However, before they can react, the bull market is over. it's over! On the contrary, adopters of fixed investment strategies always accumulate cheap chips in the long bear market, slowly accumulate energy, and start to make profits as long as there is a slight rebound. Once the bull market comes, you will make more money! By practicing a fixed investment strategy, your future profits will essentially come from the bear market you experience.
3. Expansion and extension: fixed investment strategy is not only suitable for the trading market, it is suitable for almost every important field of work, study and life. Although there is not much improvement in the short term, and it seems that learning is of little use, when the quantitative change turns into qualitative change, the increase will be astonishing, and it will definitely rise significantly in the long term! Therefore, no matter what we do, we must have a long-term perspective and ignore short-term fluctuations. Don't pay attention to others' temporary incomprehension or cynicism towards you. By the time they find out, you'll be out of reach.
4. Through the investment examples of Buffett , it is once again explained that the fixed investment strategy is to continue buying in batches for a long period of time while resolutely not selling and holding. And Buffett's success shows that this strategy is quite effective.
3. HOW
(1) Use data to speak. Specific to the year, month, day, market point, and hypothetical investment amount, these specific figures illustrate that in the S&P 500 and Bitcoin investment markets, even if you enter at the worst time, In the market, users of fixed investment strategies can also make profits in advance.
(2) uses charts to speak, showing S&P 500, Bitcoin trend charts, cumulative investment amount and net asset value curve charts, clearly and effectively showing that users of fixed investment strategies can make profits in advance even if they enter the market at the worst time.
(3) Clear and accurate numbers speak, only 150 days out of 1,000 days in the blockchain market are bull markets.
(4) Logical reasoning, just because the bear market is very long and the bull market is very short, so if you practice the fixed investment strategy, all future profits will essentially come from the bear market you have experienced.
(5) Expansion and extension: Fixed investment strategies are applicable to all important areas of life. The so-called lifelong learning and lifelong growth are essentially the use of fixed investment strategies. Same as WHY.
4. Reflection and insights:
We insist on studying, running, fitness and writing every day. In essence, we are adopting a fixed investment strategy. Practice every day and make a little progress every day, just like investing a certain amount of money in the stock market every week or every month. Although there is no big improvement in the short term, it is just a small fluctuation up and down.
But if you persist slowly and accumulate slowly, one day the quantitative changes will accumulate to qualitative changes, and a big explosion of atomic energy will occur in a short period of time! Just like the effect of a bull market climax, our assets will increase several times, even ten times!
The same goes for persisting in learning and writing. Those big Vs on the Internet also started to speak out on the Internet a long time ago. How can they suddenly become famous overnight? They are all the result of long-term accumulation.
The same is true for running and fitness. After running for a month or two, there is almost no effect and there is no way to lose weight, so many people simply give up. They are just like people who rush into the bull market, want to make quick money, and run away after grabbing a handful, but in the end achieve nothing!
But we are different. We are fixed investors with a long-term perspective. We do not focus on short-term gains and losses. We have the confidence and determination to persevere to the end. Soon, a year or two has passed. When others envy our waistcoat lines and perky buttocks, they can only compare to us!
And at the same time, they also passed by in vain. In fact, they can do it, but unfortunately they don’t understand the concept of long-term fixed investment, so they give up. So the vast majority of people are just the majority of people after all! Only a small number of people are successful!
5. Full-text logical analysis -
The original text is disassembled and analyzed as follows:
Summary: What is fixed investment strategy: "Regularly investing a certain amount of money in a certain investment target within a long period of time."
(parallel relationship) " For example, in the next 5 to 10 years, invest $150 or 1,000 yuan in BOX, a blockchain digital asset ETF product with no management fees, every week... Of course, you can replace BOX with anything worth long-term Invest in and hold targets, such as Apple stocks, Kweichow Moutai stocks, Coca-Cola stocks, or S&P Index Fund (SP 500). "
points: Is such a simple strategy really effective? Let data speak for itself.
The next few paragraphs are parallel relationships. (Parallel relationships) Investors who use data and chart analysis to determine the S&P 500 can make early profits even if they enter the market at the worst time.
At this point, "Let's look at another more shocking example. Suppose you started investing in Bitcoin in December 2017..." It is the same as the above (*progressive relationship). The next series of charts and data demonstrations are (parallel relationships).
(***Progressive relationship) (The above discusses whether the fixed investment strategy is effective. This paragraph discusses the core reasons why the fixed investment strategy is effective.) "The core mechanism why the fixed investment strategy is effective is that this strategy conforms to the real situation of the real world. : A bear market is longer than a market, and much longer... For example, in the past 1,000 days, in the blockchain digital asset trading market, the so-called bull market has not even lasted 150 days... The same pattern can be seen everywhere , no matter which price curve you observe, you will find the same pattern, whether it is the S&P Index Fund (SP500) price, or Coca-Cola, Apple , Google, Amazon, Internet, Face Books, , Tencent , Alibaba, or Kweichow Moutai... The bear market is always very short, and the market is very short. How short is the market? People even call the price during that period a bubble - - For example, the Internet bubble in the late 1990s "
(deduced to this paragraph through the above reasons) (causality)" After understanding this key, you will understand: through practice. With a fixed investment strategy, your future profits will essentially come from the bear market you have experienced! The vast majority of investors in the trading market do not understand this essence, which is also the most essential reason why most of them are destined to fail in their investments. ——They hope they can make money quickly in the fleeting market. A frustrating phenomenon is that most "investors" who are attracted into the market are destined to fail. Return, because before they could react, the short-term bull market had ended, and the long bear market had begun... On the contrary, the adopters of fixed investment strategies slowly accumulated energy in the bear market."
(#turn*progressive relationship)" In fact, the fixed investment strategy is not only suitable for investing in the trading market, it is suitable for almost any important field in life, whether it is study or work. Or family. The so-called lifelong learning or lifelong growth is essentially the adoption of a fixed investment strategy..."
General: Define the fixed investment strategy more accurately: "Continue to buy in batches over a long period of time while resolutely "Don't sell and keep holding".
(last paragraph) "Once Jeffrey Bezos asked Warren Buffett why your investment strategy is so simple, but so few people adopt it... Because no one likes to get rich slowly. "One of the most important keys to Warren Buffett's investment strategy is "long-term holding"... Adopters of the same fixed investment strategy just continue to buy in installments over a long period of time." At the same time, be determined not to sell and keep holding. "
