Practical skills for five adaptation strategies after innovation low

Summarizing the seven record low market trends over the past six years, it can be found that although the stock index has been able to break through the previous low point each time, after each record low, a strong rebound market can quickly emerge, even a reversal market. Therefore, when the stock market hits a new low, investors need to adopt market adaptive coping strategies:

1、 Correctly understand the low market trend of innovation. There is always a cycle of opportunity and risk conversion in the stock market, and hitting a new low is the concentrated release of short selling momentum and the re accumulation of long selling energy in the market. In the innovative low market, although the decline is sharp, the downward development space of the stock market is extremely limited, and there is an opportunity for rebound and rise in the future market. At this time, market risks are gradually transforming into investment opportunities.

2、 It is not advisable to panic and plummet after reaching a new low. Because the stock market cannot fall forever, hitting a new low means that the downward trend has developed into an irrational stage, and investors blindly buying and selling at this time are also irrational. Slaying prices can cause investors to lose cheap stocks, thereby losing future profit opportunities.

3、 Selling requires seizing the opportunity. If there are indeed problems in stock selection and it is necessary to sell stocks, one should also wait for the opportunity to rebound. In fact, the stock market will experience a rebound shortly after reaching a new low.

4、 Be prepared for investment. Carefully select individual stocks and be prepared to buy them at any time in terms of operations, thinking, and funding. Because there is currently no real short selling mechanism in the Chinese stock market, all investors must buy low and sell high to make a profit, and a new low is precisely an opportunity to buy low.

5、 Patiently wait for the substantial change in trend. After selecting a stock, investors should not immediately buy it, nor should they predict where the bottom will be, nor should they try to buy at the lowest level. The only thing to do at this moment is to patiently wait for the trend to completely turn. Due to the fact that the market can rise by hundreds of points every time it turns, giving up the tens of points of space during the bottom start will not affect investment returns, and will greatly improve investment safety.