Reborn with Consumption System-Chapter 599 - 265: Show Off, I’m Serious_3

We divide all our available funds into several portions and buy continuously with a fixed investment approach, instead of making a one-time, all-in purchase.

Our third core principle is this:

We only buy at the right time, and then sell at the right time.

So, the question we now need to address becomes: When is the right time to buy and sell?

It's simple: there's an indicator called the 'Equity Risk Premium Index'.

Under normal circumstances, when we evaluate the market, we use an indicator called the price-to-earnings ratio, which anyone with a bit of financial knowledge should understand.

The price-to-earnings ratio is calculated by dividing the current stock price by earnings per share.

If reversed, it becomes the earnings yield, that is: earnings per share / current price = a percentage.

Mathematically speaking, it represents the maximum rights and dividends the listed company can offer you.

We then subtract the ten-year government bond yield from the earnings yield. This difference indicates how much more money we can earn on top of the basic yield of government bonds.

This is the Equity Risk Premium Index.

When its figure exceeds 5.5, we start fixed investments in the Shanghai 50 ETF or Shanghai and Shenzhen 300 ETF, for example, investing a portion every day, 1,000 yuan.

When the figure exceeds 6, we double up, investing 2,000 yuan daily.

When it exceeds 7, we double again, investing 4,000 yuan daily.

Until we have invested all our own funds, and then we just wait for the sell signal.

Essentially, this is a left-side trading method primarily aimed at averaging down costs. It involves bottom-picking the index, profiting from its rise, and comfortably outperforming the broader market.

The cost of making fixed investments through a brokerage platform is extremely low, and the safety of strictly following this model is extremely high.

Although it won't double your money in a short time, unlike catching leading individual stocks, it also doesn't require much of your effort. You can focus on your studies and just open the software to check it once a day.

Isn't that safe, stable, and simple enough?"

Han Lie looked at the handsome young man with a smile that was not quite a smile, watching his face turn from pale to red, frowning without a word.

The audience erupted into noise again.

The surprised students discussed incessantly, filled with disbelief, their fervor nearly upending the auditorium roof.

Fixed investment using the Equity Risk Premium Index isn't anything new in later years; many conservative investors understand it. However, at this point in time, especially among a group of naive college students, it is an absolute dragon-slaying sword.

With it, one can make money with their eyes closed.

It may not have explosive power, but anyone can do it.

Han Lie watched the restless crowd below, smiling serenely as he stood still for about ten seconds.

Then, he casually opened the interface for the SPD Bank Shanghai and Shenzhen 300 Index.

"Meeting here is fate. Come, let me help you calculate the current Equity Risk Premium Index."

The audience suddenly quieted down.

As Han Lie retrieved data, opened the calculator, and tapped out numbers, he finally presented a figure that left everyone speechless.

"Ha! 6.98… It matches my assessment of the market, doesn't it?"

Han Lie casually doodled on the stock index K-line chart, sketched a few lines, and said with a light laugh, "When I lectured at SPD Bank, I told them: once the broader market touches below 2,000 points, leverage up and charge in with full force.

"Now, I'm telling you: the best window for fixed investment has arrived. But there's no rush. You still have at least half a year to accumulate pocket money, living expenses, earn money through part-time jobs, or convince your parents.

"The stock index won't move too quickly; the Shanghai and Shenzhen 300 ETF will start later than the small and medium-cap individual stocks.

"Before that, the most important thing you should do is think.

"What exactly to think about, and to what extent, is for you to consider. I don't plan to say more.

"There are always opportunities in the stock market, and even more so outside of it. Missing out once or twice is no big deal.

"Right now, we're the same age, and I already have a nine-figure fortune. By this time next year, it might even reach ten figures.

"Having money doesn't automatically mean success. However, when I stand here sharing an effective money-making strategy, giving you all an opportunity to catch up to me, you should be applauding. You shouldn't be continuing to doubt or remain indifferent."

Han Lie's "kind reminder" brought the entire auditorium to complete silence.

It was almost deathly silent, yet the sound of heavy, ragged breathing echoed through the hall.

In that moment, everyone was staring at the young man on the stage, stunned and bewildered, their minds blank…

Still holding on, I might be one of the few fish that slipped through the net in our city…