Is it suitable to buy ETFs below 3000 points?

Indeed, it is suitable.

Can one make money by buying ETFs below 3000 points?

One can make money, but not immediately.

Is it true that buying ETFs below 3000 points is like finding gold everywhere?

No, some ETFs carry risks.

Buying ETFs below 3000 points is considered safer, referring to broad-based index funds.

In the major bottom area, buying some ETFs has low risk and a relatively high potential for success.

However, this does not mean that buying ETFs at this position is a surefire way to make a profit, nor does it mean that ETFs will definitely bring substantial returns.

Buying ETFs at any position involves certain risks.Especially for short-term trends, there must be a lot of uncertainties.

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Therefore, even when investing in ETFs, a lot of preparation is needed.

1. Position control.

ETFs actually need to control positions.

Even below 3000 points, you can't go all in at once.

Because below 3000 points, the space is actually very large, not only 2900, there may also be 2800, even 2700, 2600.

This is not an alarmist statement.

Because the extreme range of valuations is actually very low.

So, building a position in ETFs below 3000 points is not something that can be achieved overnight.The best approach is pyramid investing, which means the more it falls, the more you buy, gradually increasing your position.

For broad-based indices, 3000 points is just a tentative purchase; it is only from 2900 points that you should start to slowly increase your position.

ETF position management is actually very important, especially for indices with high volatility.

For some segmented indices, it is quite normal to experience a 20% drop in the bottom area, which can result in significant losses.

It is very important to always have some ammunition in your warehouse.

2. Investment Strategy.

There are actually many investment strategies for ETFs.

Most people choose a valuation strategy, but the final actions are often deformed.

The so-called valuation strategy is to buy at low valuations and sell at high valuations.

However, the actual index trend often has a long period of low valuation, and high valuation is a cycle of a few years.Most of the time, in fact, is actually garbage time, but investors are very fond of operating.

Therefore, investment strategies are divided into many types, including swing strategies in the middle and grid strategies, which are the most widely used.

Especially for the market of range oscillation, the high selling and low buying of grid strategy actually has a good effect, and it is not too boring, which increases the trading experience.

However, such strategies can make small money, but cannot make a lot of money, and they are easily invalid for trend-based markets.

Investment strategy is actually the key to determining income.

Everyone should implement their investment strategy according to their own formulation, and once the strategy is chaotic, the risk is very great.

Below 3000 points, whether it is only buying and not selling to add positions, or making money by high selling and low buying in the fluctuation, there should be a corresponding investment strategy.

Including, doing low valuation sectors or doing big trend sectors, are actually the core of trading strategy.

3. Holding period.

The holding period of ETF is actually also the key to the strategy.The shorter the cycle, the higher the apparent return seems to be, but in actual operation, the difficulty of trading ETFs increases.

Long cycles can be based on valuation and waves to trade ETFs, doing high selling and low buying.

But if it is a short cycle, it is necessary to judge the direction of the market's short-term fluctuations, similar to stock trading.

Moreover, the fluctuation of stocks is greater than that of ETFs, and the fluctuation of many indices in a short cycle is only 5-10%, which is quite difficult to operate.

On the issue of holding period, it is the same as the strategy issue, both need to fix the cycle strategy and expectations in advance.

Of course, the holding period itself does not need to be very rigid.

For example, if the layout is below 3000 points, if it cannot go up in the short term and is in a low valuation for a long time, it is necessary to prepare for a long cycle.

But if the index has a significant increase in the short term and enters a high valuation range, it is necessary to reduce positions.

4. Index selection.

Finally, and most importantly, it is actually the selection of the index, that is, the target of investment.For ordinary investors, the selection of indices is primarily based on broad-based indices.

Broad-based indices are the most reasonable choice to fluctuate according to the direction of valuation.

If you want a higher return rate, you can choose larger broad-based indices.

For example, the volatility of the Shanghai Composite Index is very low, but the volatility of the Shenzhen Index, ChiNext, and the Science and Technology Innovation Board is very high.

The fluctuations of broad-based indices such as the Shanghai 50 and the CSI 300 will be slightly smaller, but the fluctuations of the CSI 500, CSI 1000, and CSI 2000 indices will be slightly larger.

Choose broad-based indices based on the market value of the sector and the historical volatility.

The strategy of fixed investment has a significant advantage for broad-based indices with larger fluctuations.

Another type of index selection is aimed at indices that follow major industry trends.

For example, the once popular consumer index was a long-term bull market index.

The liquor index, which has been hyped up, is actually an index that has been rising for a long time and belongs to the trend category.Including the new energy of the past two years, it is actually a trend index of this kind.

The trend of such major trends corresponds to the opportunity of ETFs.

However, it is also important to remember that once this index reaches a high point, the space to fall is also very large.

For the choice of the index, those with experience can find sub-industry indices, and those without experience, doing a broad-based index is the safest.

After all, a broad-based index like the Shanghai Composite Index, no matter how much it falls, the risk is relatively limited.

The choice of the index is the core of the entire ETF investment and is the most complex.

If you have an understanding of the market, choose the industry index you can understand, the broad-based index.

If you don't understand the market, then find a broad-based index with large fluctuations and make a mindless fixed investment.

Control the position well, manage the expected return, and at the same time have enough patience for the investment cycle, it can also be done.ETFs themselves do not experience the same high levels of volatility as stocks do.

Therefore, the overall investment strategy for ETFs is to buy at low valuations and wait to sell at high valuations.

It is quite difficult to make money from short-term fluctuations in ETFs.

Because the valuation fluctuations are not very high, the difficulty of grasping the waves is very high.

The long cycle of A-shares, 5-7 years, the extreme value of valuation, often differs by more than one time.

If you can make a profit of 50%-70% in a large valuation cycle, then an annualized return of more than 10% is a relatively high return for ETFs.

Of course, there is another way to invest in ETFs, which is based on the development of industry trends.

During the rise of industry development, the imagination space of the entire ETF is relatively large.

But the selection of industries is difficult for ordinary investors to achieve, not suitable for public investment.

Therefore, ETF investment actually requires enough patience, not in a moment.In conclusion, let me remind you once again.

The bottom area is just a zone, and the scope of a zone can be small or large. Placing risk control at the top of the priority list is the most important thing.