Do not look at the valuation

At extreme times, the market often does not look at valuations.

The big bull market and the big bear are not looking at the valuation, and the stock price follows the market sentiment. Therefore, when the big bull market is in the market, investors are most afraid of underperforming the market, losing their jobs, and losing their homes. Everyone is desperate to grab the goods; in the big bear market, cash For the king, the stock price and valuation are good, and it is still asking for money.

Every such extreme moment provides good trading opportunities. At this time, it is necessary to have independent thinking and to make reasonable trading decisions without being affected by the market atmosphere.

Of course, the right time to appear, but also with the careful deployment, not that the purchase will be all in one position. We don’t have a crystal ball in our hands. Can’t we know that 25,000 is the bottom, or 22,000, or 18,000? If you compare the two big bear markets before 1998 and 2008 (or, in fact, the stock market crash), the HSI is only about 25% lower from the high level. If it is a large bear market, the decline should not be enough.

Many people in the market have lowered the target of the HSI to around 21, 22,000, and may have the opportunity to reach the target before the end of the year. At present, the strategy for dealing with the plunge market is still to diversify investment, enter the market segmentally, and maintain an appropriate proportion of cash.

Also, don’t borrow and develop derivatives with caution. You don’t borrow exhibitions, don’t speculate on derivatives, just hold stocks in full positions, and you can’t lose you. In the past, the stock market crashed to jump off the building, often because of the ambition, too aggressive, or risk management problems.