Batch building is a capital management and risk control strategy that involves gradually buying or selling assets at different points in time and/or price levels to spread the entry time and price, thereby averaging costs and reducing the uncertainty risks brought by short-term market fluctuations. Here are some specific batch building methods:
1️⃣ Equal batch building: Divide the funds to be invested into several equal parts and gradually buy according to predetermined time intervals. This method is simple to operate and disperses risk relatively evenly.
2️⃣ Proportional batch building: Determine the proportion of each purchase based on the market's valuation level. For example, increase the purchase proportion when market valuations are low; decrease the purchase proportion when valuations are high.
3️⃣ Index building method: As asset prices decline, continuously increase the buying intensity; as prices rise, reduce the layout positions. This method requires cautious operation, as it may lead to an exponential increase in additional capital.
4️⃣ Pyramid building method: Similar to the index building method, increase the buying intensity as asset prices decline; reduce the layout positions as prices rise. This method is suitable for investors with a poor grasp of market certainty.
5️⃣ Equal division building method: After equally dividing the funds, participate in building when profits are in line with the trend.
6️⃣ Fixed investment strategy: Purchase assets at fixed intervals (for example, weekly or monthly) with a fixed amount to reduce the impact of market volatility.
7️⃣ Technical analysis building: Use technical analysis tools, combined with charts and indicators, to assess market trends and timely build positions, increase positions, or reduce positions.
8️⃣ Timing the price correction: When the market price experiences significant fluctuations, consider it an opportunity for price correction and gradually increase positions through batch building.
The batch building strategy can reduce the risks caused by misjudgments while ensuring substantial returns while managing risks. When implementing the batch building strategy, investors need to conduct a comprehensive assessment based on their risk tolerance, financial situation, and investment objectives, and pay attention to market dynamics and asset price fluctuations to choose suitable times for batch purchases.