Day 21

Part One: Regular Investing 

Investing is not easy, and successful investing is even harder. But just because something isn't easy doesn't mean there  isn't a simple , direct , brutal and effective strategy that almost everyone can correctly master and deploy.


Day 22

1.1 The strategy and Results

1.1 定投策略及其效果展示

Regular investing is quite simple.

Regularly invest a set amount in a particular(特定) investment over a long period(时间) of time. 


For example ,every week (regularly)for the next five or ten years(a long period of time) invest 200 USD (a set amount) in BOX (a particular investment) . Of course , you could change BOX to any investment that is worth investing in and holding over a period of time.such as shares in Apple,Maotai,coca-cola,or an S&P 500 index fund.


Day 23

Is such a simple strategy really effective? The number don't lie.


Suppose you started investing in the S&P 500 on October 8th 2007.Knowing what we know now, that seems to be the worst time to enter the market, because what immediately followed was the 2008 financial crisis, and it was that day that the stock market began to crash. So if you started investing $1000 USD per week on that day ....


Day 24

What would the result be?

Back on the October 8th, 2007, it would be really hard to say. But looking at it from today , more than a decade(十年) later, the answer is clear : the result were fantastic! 

We experienced a crash in the market from $1561 to a low $683, but we kept buying at that low price.

Later, the market recovered, and by October of 2019 the S&P 500 had exceeded(超过) $2960


Day 25

But this description is missing an important detail. The chart below shows the value of your total assets (the red line) and the value of your total investment ( the blue line)


There is an extended period of time (持续一段时间)when your asset value drops below your total investment.But towards(往)the and of 2009 the red line passes the blue line, and it almost never drops below it again, growing taster over time.