Describing the market trend of 2024 with an electric fan is not an exaggeration at all.

So far in 2024, there has been only one main theme of "low-altitude economy" that has lasted for three months (from February to May), and the sustainability of other sectors' increases is very limited.

The electric fan market, as the name suggests, keeps turning and blowing.

When you think a sector and direction have opportunities, you chase high and enter, and then you will suffer losses.

If you are unwilling to sell even with a small profit, you will take the elevator and start to lose money.

There is only one main line in the market, called "group hug", and the premise is the electric fan.

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The so-called group hug is mainly in the direction of good performance and dividends, and there is no other direction.

Since the electric fan is blowing, there must be people making money and people losing money.

There are two types of capital that make money.

The first type is the leading capital of the electric fan.Buy when it falls too much, and run when it rises, they are the instigators of the fan market trend.

Yes, it is they who lead the market pattern.

This group of funds, they specifically target funds that chase rises and kill falls for harvesting.

You can give this kind of fund a nickname, called the stock harvester.

The biggest difference between them and quantitative trading is that they are the leading party, while quantitative is the following party.

They choose some industries that are ignored or have been falling all the way, and then enter the market to layout.

After the chips are collected, they use the method of reversing and short frying to pull up, attract the following plate, and then smoothly unload.

Although this method, the trading cycle is relatively long, and the investment return rate is not high, but the risk is actually very low.

These main funds make money by repeatedly blowing fans in multiple sectors.

The second kind is the quantitative funds that sell high and buy low.Quantitative funds are one of the main drivers of the fan-like market trend.

Quantitative strategies lack thought and only execute commands.

When the price falls too much, it naturally buys; when it rises too much, it naturally sells.

The fan-like market trend is actually very friendly to quantitative strategies.

Because what they like is the fluctuating market, which offers many opportunities to make money.

Most quantitative strategies are arbitrage-based, so once the market starts to rise, they become short sellers, selling and selling and selling.

Intraday high selling and low buying, as well as swing high selling and low buying, are all indispensable.

As the fan blows a circle, they trade a circle, never missing out, and they go wherever there is an opportunity to trade.

The fan-like market trend has become a market where the main force harvests the remaining funds.

The reason why the trading volume is getting smaller and smaller is that after round after round of harvesting, the remaining funds are getting less and less.This pattern will not change in the short term.

Many retail investors mention that stopping quantitative trading and securities lending will not solve the problem.

The essential issue of the market is the lack of new money, rather than changing from automatic harvesting to manual harvesting.

A-shares have been around for more than 30 years, and it has always been the case that large capital harvests retail investors, and this will never change.

Moreover, the global market follows the rule of the big fish eating the small fish, which is the law of the capital market.

So, either take a break and do nothing, or adapt to the market and survive in the fan market.

Facing the fan market, as long as you don't think about making a lot of money, it is still easy to make a little money.

Because the fan market is relatively simple.

To participate in the fan market, there is a necessary condition, which is the mentality.The electric fan market is actually a contrarian trading, commonly known as chasing falls and killing rises.

The rising sectors are often adjusted for a period of time, rather than continuous rises.

Dare to lurk, dare to accept floating losses, it is possible to do well in high selling and low buying.

Those who are mentally explosive when falling, and desperately want to chase when they see rising, are not suitable for the electric fan market.

There are also those who, as soon as they see a rise, fantasize about making a lot of money, which is also not very suitable for the electric fan market.

To do this kind of market, you must first understand the market itself, and then have the opportunity to do well in the market.

Regarding the steps to participate, it is relatively simple.

First, select the sector or concept.

Many people will say that choosing a sector is very difficult.

In fact, it is not the case, choosing a sector, choosing a concept, is actually very simple.For those with high return requirements, choose sectors with better flexibility.

It's like when I'm in the fan market, the main sector I participate in is the technology sector.

The technology sector, the concept is a bit vague, so the fluctuation is very large, but the value of participation is high, because every round of the rise has technology.

After selecting the sector, it's about the way of participation.

The simplest way to participate is to buy index ETFs, followed by buying leading stocks within the sector.

For example, in the technology sector, what I personally participate in is artificial intelligence, communication, large models, etc., and the main stocks I participate in are leading stocks with high growth in performance.

It is necessary to be clear about what you are doing, choose the familiar to do, and do not participate in the unfamiliar.

Second, formulate a low absorption plan and buy in batches.

The key to the fan market is to have a plan when buying.

Low absorption is definitely right, the key is how to absorb in batches.Many people always stay at the level of understanding low absorption, but they cannot execute it.

They dare not buy when the price falls, or they buy full position at once.

The best way to absorb low is to write down the plan directly, and then execute it like a machine in a fool-like manner.

Some people will ask, what if the price doesn't fall much and rises, and the position is not enough.

Don't worry about this, just let it go.

In the fan market, the more it falls, the greater the opportunity. If it rises with a small drop, the opportunity is naturally not much, because the space is small.

Third, when encountering a pulse market, sell in batches.

Most fan markets are pulse markets.

The so-called pulse market is a market that lasts for 1-2 days at most, and 3-5 days at most.

The pulse market has no continuity, it is fleeting, and it is good to be able to rise for 2 small rounds.The height of the pulse market, calculated from the lowest point, is mostly between 15-20%, and the leading stocks may have better elasticity.

If your entry point is relatively high, you may need to sell when there is a profit of 3-5%.

It is recommended to lock in profits in batches, and not to have too many expectations.

Missing the high point is not a pity, because taking an elevator up and down is what leads to failure.

Since trading in the fan market also has capital and time costs, it is best to take profits when they are good, no matter how much.

Similarly, you can set a target and take profits when the target is reached.

Such a fan market may continue for about half a year.

During this period, there is no additional increase in the market, and this pattern cannot be changed, so it can only adapt to the current market.

Isn't it what everyone often talks about, selling high and buying low?

Simply doing it is the best way to deal with the current complex environment.There is an invisible hand in the market, supporting the overall trend, but its strength is limited and can only maintain the pattern of a fan.

As always, if you don't want to do it, just take a rest. If you want to do it, follow the rules and give up on chasing gains and cutting losses.