There is a famous saying in the stock market that beginners die from chasing high prices, veterans die from bottom fishing, and masters die from leverage. Bottom fishing is not fun. At the end of a bull market, there are usually a large number of bottom fishing traps, many of which even avoid high points, sharp drops, and stock market crashes, but die on the road to bottom fishing. So the problem is, shouldn't bottom fishing be? Is there a trick to bottom fishing?

Bottom fishing trick 1: Never accept flying knives empty handed

The so-called flying knife refers to stocks that have experienced a sharp decline in the stock market. Some people like to buy before the close of the market to gain a rebound the next day. I call it receiving a flying knife empty handed. Although this practice may be wrong many times, it will eventually result in losses. The most fatal thing is that you have developed a habit of eventually losing money.

No matter how much you earn in the beginning, you will eventually be trapped. Once you are trapped, it's okay to cut the meat decisively. If you hesitate for a moment, it may disrupt your entire operational thinking and rhythm. When the real bottom comes, you may find that you have no money left.

Bottom fishing trick 2: The simplest and most difficult

A very simple technique is that the overall market has not hit a new low for a month, and the individual stock you want to buy has also not hit a new low for a month. The combination of two non record lows is basically an opportunity to buy.

Time is the best weapon for investors. We must be good at using this weapon to protect our investments and learn to use it to counter market uncertainty. Wait! It is also a strategy, which is the simplest, but only true experts can achieve it.

Bottom fishing trick 3: Technology is important, discipline is more important

There is a technique called the Gu Bi reciprocal line, which is the ultimate move of one of the most powerful technical masters in the world today. After the market reaches its lowest point, it counts two bearish lines forward (excluding the gestational line) and uses its high point as an important technical level. As long as the index rebounds above this level, it can enter the market to compete for a rebound.

But they also emphasized later that this thing is called technology. What is technology? It is probability. If it exceeds this high point, there may be a rebound market, but it is not guaranteed to rebound. What if it is wrong? If you're wrong, you're wrong (if you fall below the rebound position again). Stop loss quickly and never take any chances.