Most people may take great pleasure in the battle to defend the 3000-point mark.
However, for me, the 3000-point mark is just a psychological barrier that is not a real obstacle, it is merely four cold numbers.
There is no need to care about the gains and losses of the 3000-point mark; what needs to be done is to distinguish what investors need to do below the 3000-point mark.
If you look at it from a rational perspective.
Below 3000 points is an opportunity, above 3000 points is a risk.
But most retail investors do not think so.
Retail investors will be delighted when the market rises above 3000 points and anxious when it falls below 3000 points.
Every time the market rises above 3000 points, the mentality of retail investors is to bid farewell to the 3000-point mark, believing that the 3000-point mark will be unbreakable in the future.
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And when the market breaks below 3000 points again, all that is left in their hearts is cursing, thinking that this is a fraudulent market.
Emotion, in the stock market, does not generate positive value, almost all of it is negative.The vast majority of retail investors are deceived by various distractions every time, leading to incorrect judgments.
In most cases, what the market shows you is what it wants you to see, not the truth.
And each time the index hits 3000 points, it is actually a "massacre" for retail investors, washing out a large number of them.
It can be said that when the index breaks below 3000 points again, few people believe that an opportunity has come.
Over the years, there have been very few retail investors who open accounts and enter the market below 3000 points, while many choose to cut their losses and leave.
That is to say, even knowing that at some point in the future, the market will rise back to 3000 points, they still choose to cut their losses instead of boldly increasing their positions.
This is the significance of the 3000 point mark, time and time again, washing out retail investors.
If you accept this rather harsh fact, then we can start discussing the next topic.
Since the survivors are the kings, what kind of person is the true king below 3000 points?Not closing accounts may mean you are a survivor, but you are definitely not a winner.
A true winner must meet several conditions.
First, you must have cash on hand.
Below 3000 points, there are opportunities to buy at the bottom everywhere.
But there is a prerequisite for bottom fishing, which is to have money in hand.
One mistake that most retail investors make is to think that the fall below 3000 points is not deep, so they fire all their bullets too early.
Without money, you can only watch helplessly as there are cheap chips everywhere, but you don't have the ability to pick them up.
Not to mention the distant past, just talk about the recent past, the low points below 3000 points in the past ten years.
2850, 2638, 2449, 2440, 2646, 2863, 2885, 2635, it seems that none of them are higher than 2900, and the major low points are all between 2400-2600.
Smart investors know how to build positions in batches below 3000 points, instead of going full at once.After all, the range of 2600-3000 points is the space, and it is also the opportunity to earn excessive returns.
There is another point, which is that below 3000 points, it is also a massacre. The differentiation between the index and individual stocks will cause many stocks to plummet below 3000 points, with numerous instances of stocks being halved in value.
The cash in hand is a symbol of the king, and it is the smart retail investor who can play the bullets in hand at the right time.
Secondly, the heart is full of expectations.
Most retail investors are uneasy, even sad and desperate, when the market breaks through 3000 points.
The 3000 point mark has been broken again.
They have no expectations because their positions are heavy, and their floating losses are increasing.
The market has been tossing around the 3000 point mark for nearly 20 years, which makes many people feel desperate about the market, believing that A-shares only fall and do not rise.
But in fact, if you look at the problem from another perspective.
Every time it falls below 3000 points, it has risen later, isn't this a gift of money?If you are not overly greedy and choose not to invest in individual stocks but instead opt for an index fund, it is almost akin to a sure win.
When you look forward to the market below 3000 points with anticipation, you will find that there is gold everywhere.
You will be particularly happy because it feels just like picking up money.
It is often said that one should accumulate stocks in a bear market and make money in a bull market. With this mindset, you will naturally be more eager to see the market below 3000 points, rather than always fearing a drop back to 3000 points.
Thirdly, opportunities are all around you.
Below 3000 points, opportunities are everywhere, and what is needed at this time is vision.
We all know that there are many reasons for a stock's decline.
Some are due to problems within the listed companies themselves, leading to a decline, and some are due to the withdrawal of market funds and insufficient liquidity, resulting in a decline.
There is a term called "wrongful killing."
In fact, below 3000 points, what you are looking for are those high-quality individual stocks with high intrinsic value that have been wrongfully killed.Do not always listen to others saying that performance is useless; the standard for high-quality individual stocks is good performance.
Below 3000 points, when the main line and themes are not clear, and the future direction is not very clear, just look for opportunities in high-quality individual stocks.
Of course, some veterans prefer to wait, waiting for the market to give a clear bottom signal before taking action, not rushing to make a move.
But in any case, in the eyes of these kings, below 3000 points, there are opportunities everywhere, and their eyes will always be fixed on the stocks they think are good.
Fourth, have execution in hand.
The last key point is execution.
Below 3000 points, it is an opportunity to find a phased bottom, and it is more likely to be the starting point of a bull market.
The strategy to be executed below 3000 points is different from above 3000 points.
Below 3000 points is a big opportunity, and such opportunities, at least once every half a year or a year, may only come once every few years.
Make a good plan, and then strictly execute it.Below 3000 points, the market will experience more intense fluctuations, testing people's patience and the execution ability of investors even more.
The principle of buying more as the price falls is fundamental, but how to buy, when to make the move, and whether one would be eager to go all-in, all require the key element of execution ability.
Moreover, the trading strategies for bull and bear markets are completely different.
In the stage of the end of a bear market and the beginning of a bull market, what kind of strategy and how to implement it is the most effective, and this is what needs to be pondered.
To be honest, stock trading is very difficult, and those who say it is easy are deceiving you.
If stock trading were really so simple, then it would be easy to learn, and the way would be simple.
Then in this market, there might be full-time stock investors everywhere.
It is precisely because stock trading is difficult, one must overcome human nature, study the laws of the market, and adapt to various changes, which will wash away one group of people after another.
Those veteran investors who remain, although they cannot be said to make money for sure, have survived in the market after many battles, which means they can make money and have methods.It's once again a time filled with opportunities, yet it's also a challenging period to navigate effectively. It's time to organize our thoughts more thoroughly.
Often, we fail because we cannot manage our emotions well, and we cannot effectively execute the strategies we have set for ourselves.
Human nature is inherently greedy, but making money is about having the right approach, and this is something we need to understand clearly.
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