Tip 6: A sharp drop is a significant opportunity. A sharp decline can be divided into a general market crash and individual stock crash. The chances of a bearish decline are much fewer than a sharp decline, which often presents significant opportunities. During my years of stock trading, the market often experienced 2-3 sharp drops each year. A sharp drop is often caused by major bearish or accidental events. A sharp drop that occurs at a relatively high point in the market should be treated with caution. However, for a sharp drop that occurs after the main downtrend or a long period of bearish decline, you should pay attention to the stock, because many bull stocks have the opportunity to fall out.