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The 4% Auto-Invest method is a unique investment strategy, with the core concept being "go with the trend, Buy the Dips." This method is mainly divided into three key stages:
First is the initial position building phase. Investors need to divide the total capital into 10 to 15 parts, investing only one part at a time. This approach effectively diversifies risk and avoids putting in too much capital at once.
The next phase is the continuous investment stage. Investors need to closely monitor market trends and invest another portion of funds when the market price drops 4% from the recent low. This strategy helps investors gradually increase their holdings during market downturns instead of chasing highs and selling lows.
Finally, it's the profit-taking exit stage. When investment returns reach between 10% and 30%, investors should remain vigilant. If the market falls back 4% from the peak, it may be time to consider selling for profit. After that, when the market drops again by 4%, a new round of Auto-Invest cycle can be restarted.
This investment method emphasizes patience and discipline, requiring investors to resist the impulse to blindly increase their investments during market upswings, while maintaining calm during market downturns to seize opportunities to Buy the Dips. By this approach, investors can achieve relatively stable returns in the long term while effectively controlling risks.
It is important to note that while the 4% Auto-Invest strategy has its unique advantages, it is not suitable for everyone or all market environments. Investors adopting this strategy still need to formulate an appropriate investment plan based on their own financial situation, risk tolerance, and market judgment.