Stock "earthquake": a storm that tests investors' determination
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introduction
Who would have thought that today's stock market is like being attacked by a beast, as if experiencing an unprecedented "earthquake", this is not a small fight, the Shanghai Index fell 230 points at the opening, a decline of 662%, and the shareholders of the entire market are so scared that their hearts are about to jump out! You see, the GEM is even more suffocating, falling 270 points, a drop of more than 10%, at this moment, more than 2,100 stocks fell directly to the limit, it was like being magical, and the entire market fell into panic
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Let's not just follow others to panic for a moment, let's calm down today and see what kind of stories and mysteries are hidden behind these fluctuations
The hard days of the market: the reason behind the earthquake
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There are actually several key reasons behind this "earthquake", let us make it clear one by one
Some time ago, the stock went all the way, many people have the myth of "full harvest", thinking about how to grasp the opportunity, but the prosperity must decline, everyone in the mood is high, it is inevitable to think about cashing out quickly, selling profits, and the previous day's market pullback threw off some people to be trapped, and people were caught in panic, which directly gave birth to this huge selling tide
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The turbulence of the external market is undoubtedly the "accelerant" that exacerbates the panic of stocks, the market is not a vacuum, the whole world is watching, especially the recent fall of Hong Kong stocks and the 50 index, and even the downturn of Chinese concept stocks, forming a chain reaction, some investors have been scared in this atmosphere to tremble, and feel powerless to struggle when they open the market
Opportunity in Crisis: How to Find Opportunities in Volatility
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Although today's market has caused countless investors to flee in a hurry, if you think about it, perhaps this is an enlightening opportunity, and we cannot lose the overall view of the market because of short-term shocks
Short-term shocks are indeed exciting, for short-term investors is a "test of the mind", we can not lose our minds, a prudent investor should remember that the most important thing in investment is not the pursuit of short-term profits, but to control risks, calm down, you will find that this volatility is actually an opportunity to buy, those who today because of panic and cut off the meat of friends, the future may miss a valuable rebound opportunity
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For those who value long-term investment, today's market fluctuations may be the opportunity to "pick up cheap", the adjustment of the market is often to pave the way for a strong rebound in the future, history has long proved that after each sharp decline, there are always investors to buy at a low price, and finally harvest a lot, keep calm, look for those high-quality companies "value depression", patiently waiting for the market to pick up, is the elegant demeanor of smart investors
What should retail investors do in the face of institutional retreat?
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Today's data is shocking, the large-scale withdrawal of the main funds, the outflow of about 235 billion today, seems sinister, but in fact it sends us a major signal - the market bubble is gradually squeezing out, generally speaking, a big move of institutional funds often represents a change in future market risks
Although institutional funds are withdrawing, retail investors do not necessarily need to follow together to the desperate situation, short-term market fluctuations are inevitable, but this does not mean that long-term investment opportunities disappear, and the long-term development potential of companies that are really supported by fundamentals will not be dissipated by this "gust of wind".
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The stability of the investor's mentality is more critical than the operation, whether it is the large-scale withdrawal of institutions, or the violent shock of the market, which poses a severe challenge to the psychological quality of investors, those who always want to chase the rise and kill the fall of friends, often easy to be cut leeks by short-term fluctuations in the market, the right way is to keep calm and rational, think clearly about the timing of the dice, rather than let emotions become the dominant decision-making
Those who can survive in the market are often the elders who can see through the essence of the market and have a stable mentality
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epilogue
Although today's stock caught many investors off guard, it also reminds us not only to stare at short-term fluctuations, the focus should be on the long-term market development, the market is not a storm, after the wind and rain, will usher in new opportunities, investors should keep a clear mind, pay attention to market fundamentals, seize the potential opportunities, in order to sit firmly in the next round of rebound this swinging ship, laugh to the end of the business sea, there are gains and losses, the key depends on how you grasp
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