Small and medium-sized stocks lose their liquidity

Hong Kong stocks have recently fallen, and the index has just dropped 20% from its high level. It can be technically defined as entering a bear market. However, in fact, small and medium-sized stocks have entered a bear market early. I believe that the small and medium-sized stocks held by everyone are generally down from the high level. It certainly exceeds the decline of the HSI.

While small and medium-sized stocks fell, liquidity also became worse. Basically, many small-cap stocks trade only tens of thousands or hundreds of thousands of yuan a day. If there are more than one million yuan, the liquidity is good. Therefore, most small and medium-sized stocks now have a slightly larger number of stocks. It may take several days to digest, and the price may be a double-digit decline in the stock price.

In the face of the liquidity of the disappearance of small and medium-sized stocks, if you have already held a large position, of course, you are worried. In addition to worrying about the stock price falling, you are worried that if your shareholding is to stop the loss, there is no buying, you need to The price can only be sold out, which is the risk of the current small and medium-sized stocks losing liquidity.

At the same time, for investors who are interested in depreciating, low liquidity offers an opportunity to buy lower. Low urgency does allow investors to take longer to collect, but buying prices will be more attractive and potential returns will be higher in the future. Because there is no liquidity relationship, the valuation has fallen lower and lower. The market has already seen many small-cap stocks with valuations as low as 4 or 5 times, and the valuation seems to have room to fall. It has made me want to start. Segment collection.

I am not sure how much the small and medium-sized stocks will fall again, so the current buying price will be smaller than before. The bet of the previous 1 note will be disassembled into 3 bets, allowing you to have more room for error, and can also reduce the speed of capital consumption. It is still the time when “cash is king”, and there is more cash in hand. Can more calmly deal with the fall.