The investment era of rebirth

Chapter 429 Choice of Investment Opportunity!

"However, looking at the performance of the main lines of the market and the performance of various industry sectors, there is no obvious main line or industry sector showing vitality." Li Meng responded, "It is almost a trend of decline and collapse across the board, new market opportunities and market hopes , I'm afraid it's still very far away!"

Su Yu smiled and said: "Everything has a process, and changes in market trends and sentiments also have inertia. We just need to understand what kind of trend the market is currently in, and then wait for the market trend and change step by step. It’s enough when the emotional change point comes.”

"Again……"

Su Yu paused, and continued: "Being patient and waiting until you find a clear investment opportunity is the most important and most appropriate trading strategy in market transactions."

"That's true!" Li Meng nodded with a smile, and said, "In market transactions, 90% of the time is the so-called garbage time, and the real market development time only accounts for 10% of the entire transaction process. Meaning we spend 90% of the time waiting."

"It only takes 10 seconds to make a trading decision." Su Yu said, "But it often takes a long time to judge the market buying and selling points. In the trading market, we traders are like hunters. The funds in the market are bullets, the entire market is a forest, and the investment opportunities for buying and selling are the prey we are finally waiting for.”

"A successful hunter can always hold a shotgun and wait patiently for the prey to slowly approach within range before pulling the trigger in his hand."

"Also, a successful trader."

"We must also have this kind of patience, wait for the investment opportunities of market trading, and only when we are really exposed to the field of vision, can we decisively invest the funds in our hands."

"and also……"

Su Yu paused, and continued: "The opportunities in the market are unlimited, but the investment capital in each of us is limited, which means that whenever we make an investment strategy, choose an investment opportunity, invest When investing in capital, in fact, when choosing an opportunity, you are also giving up some opportunities at the same time.”

"Just like a person, it is impossible to sit on two chairs at the same time."

"In the transaction, we can't think about wanting, wanting, and wanting. Once we are too greedy and want to seize every opportunity in the market, it is very likely that we will get nothing."

"You must be patient and know how to choose opportunities. Is this what Master means?" Liu Yuan heard Su Yu's analysis of trading mentality, thought for a while, and then said, "In the current market situation, Master is telling us to You have to watch more and move less. If you are not sure, you would rather miss the short-term rebound opportunity than go against the trend that has already reversed."

Su Yu smiled and said, "Don't think too much about it, I'm just talking casually."

"You are just talking casually." Li Meng chuckled, "You are clearly bearish on the market at this stage, and remind everyone to operate cautiously, and change the aggressive operation strategy into a conservative strategy."

"After the 2300 point fell below, when everyone realizes that the market has no obvious support here, the market should further accelerate its decline?" If you hold on, there is a high probability that the index will come out in a head-and-shoulders pattern!"

"It would be perfect if that's the case." Zhu Tianyang, who was behind Wang Can, responded, "I'm afraid that after the market sentiment turns negative, the Shanghai Stock Exchange Index will not be able to hold up at 2200. In that case... the index will fall back to the large box of 2000 to 2200 points. This also means that the breakthrough market trend created by our company's previous two core market lines of 'infrastructure' and 'state-owned enterprise reform' is completely over."

"It should not fall back to the original point." Zhao Lijun pondered for a moment, and responded, "The investment expectations of various major lines such as 'infrastructure', 'state-owned enterprise reform', 'Internet finance', and 'Shanghai Free Trade Zone' are different from those before. In comparison, there have obviously been great changes, and the fundamentals of the major main lines are gradually improving. It is estimated that the performance of the core constituent stocks related to these major main lines will not be too high after the semi-annual report is released. Poor, so... Even if the bullish sentiment in the market declines sharply and the market valuation level falls back to the original point, the stock prices of these core constituent stocks of each main line will not be able to return to before the start.”

"Indeed, I think so too." Zhang Guobing, the third trading team leader of the trading room, nodded and said, "We can be pessimistic in the short term, but in the long run, we must be optimistic."

During the short discussion between everyone...

At this time, the market trading time has reached 9:25, and the call auction of the two cities is over.

I saw that after a total of 10 minutes of call auctions, the stock index finally opened lower at 2275.35 points, down 1.12%, while the Shenzhen Stock Exchange Index and ChiNext Index fell 1.09% and 1.17% respectively. As well as many trading days in the previous period, they have all decreased.

In addition to the major indexes that opened sharply lower, the performance of the market industry sector and the main concept line.

They were also significantly lower than market investor expectations.

Among them, 'infrastructure', 'state-owned enterprise reform', 'Internet finance', 'Shanghai Free Trade Zone' and other popular main lines in the early stage all opened sharply lower. Industrial sector indexes such as iron and steel, real estate, and film and television media all opened lower than the Shanghai Stock Exchange Index, showing a trend of leading the decline in the two cities' industry sectors, and their performance was extremely weak.

As for the popular and popular stocks in these mainline fields, it is even more appalling.

For example, the most popular leader in the two cities, Beixin Road and Bridge opened directly with the limit down, and the entire call auction transaction exceeded 1100 million, and the opening seal on the limit reached more than 13 lots; Lianhe Sanmao, two popular stocks on the Shanghai stock market, both opened lower at around a 7% drop, and sell-offs were also emerging in an endless stream; the two stocks of China Fortune Land Development and Kumho Group, a real estate "dual hero", opened lower at around a 5% drop , and the net outflow of main funds just after the opening of the market has reached more than 500 million.

There are also a series of popular stocks such as Beijiang Communication Construction, Dongfang Fortune, Huayi Brothers, Yukai Development, Shanghai Construction Engineering, Huaguo MCC, Shibei High-tech, Waigaoqiao...etc.

They are no longer in any strong state in the previous period, and have significantly underperformed the broader market index.

Moreover, the performance of the trading orders on the disks of each stock showed a state of comprehensive suppression of selling orders.

This shows that when the bullish sentiment in the market has declined in an all-round way, the hype in the market has completely subsided, and the risk appetite in the market has dropped sharply, the main funds from all walks of life are desperately reducing their positions and fleeing from these stocks that are relatively high in the market, and judging from the changes in market volume However, most of the funds that lighten up and escape from these relatively high-level stocks did not flow into relatively low-level stocks with relatively low risks, but completely flowed out of the market, choosing to wait and see with short positions.

"This opening is really seriously lower than expected."

Seeing the opening situation of the market, at this moment in Shenzhen Stock Exchange, inside Xinniu Fund Company, in the trading room of the main fund, the trading team leader Mou Zhengxing stared at the market that was temporarily stagnant, couldn't help but sighed softly, and said: "Look at the situation, It is estimated that the market will enter a stage of accelerated decline under the guidance of a full-scale negative sentiment, at least the two core popular mainlines of 'infrastructure' and 'state-owned enterprise reform' are completely dead."

Hearing what Mou Zhengxing said, Fang Xinsheng, the fund manager, responded: "Investors' confidence in the market has collapsed, and their hopes have been shattered. In addition, after the regulator announced the restart of the IPO, for two consecutive days, they did not announce any new good market news for hedging. The bad news of the restart of the IPO has led to a sharp decline in the market's trust in the regulator's maintenance of the market, so... under the resonance of market news and sentiment, coupled with the continued large sums of funds from the "Yuhang Department" on the Dragon and Tiger List If you sell, it will be even more difficult for the index to stabilize at 2300 points."

"2300 points can't be kept, everyone's expectations naturally fall to 2200 points."

"And market investors are expecting the index to fall back to 2200 points. Once this consensus is reached, it will be quite logical for the index to enter an accelerated decline channel."

"Once the trend turns, market confidence will collapse so quickly!" Liu Xin, general manager of Xinniu Fund Company, standing beside Fang Xinsheng and watching the big screens of the two cities, said with emotion, "Fortunately, we changed our trading strategy in time. Otherwise, according to today's situation, I am afraid that it will be difficult to complete a large-scale lightening operation."

"Indeed." Mou Zhengxing replied, "Once the market's expected consensus is formed, no matter whether it goes up or down, the trend will accelerate, and it will really be faster and faster."

"Look at the check from Beixin Luqiao..."

"I really didn't expect this popular and popular stock to hit the daily limit at the opening of the market today."

"This kind of straight up and down trend feels that even if the stock price is cut in half, it can't be stopped, and this stock's decline continues. It is estimated that the core market of the two major markets of 'infrastructure' and 'state-owned enterprise reform' will hardly turn around."

Fang Xinsheng smiled lightly, staring at the short-term frozen market of the two cities, but had a different idea, and said: "I think the market's expected consensus has emerged, and the index has entered an accelerated decline channel, which is not a bad thing."

"How to say?" Liu Xin asked hastily.

Fang Xinsheng pondered for a moment before responding: "The A-share market, due to the special structure and distribution of investors participating in the market, in fact, in terms of long-short performance, it is greatly affected by emotions, and they often like to go to extremes. Falling too far, it's like a pendulum that has to swing from one extreme to the other before turning back."

"And the market swings from one extreme to the other."

"Emotional overreaction and the accelerated decline in the index will actually help the other extreme to come quickly."

"That is to say, this kind of extreme emotional reaction will help the market to quickly produce the next stage of the market. This is also the fundamental reason and the reason why we usually say that 'continuous sharp declines are better than continuous negative declines' in trading." underlying logic."

"Understood!" Liu Xin nodded, "Indeed, a sharp drop is better than a negative fall. A continuous sharp drop will prompt investors trapped in the market to cut their flesh quickly, while a continuous negative drop will only make investors trapped in the market lose their money." Investors continue to hold on to a ray of hope, and then they are completely trapped, in other words... continuous sharp falls can make the bargaining chip structure in the market quickly adjusted, while continuous negative falls cannot do this.”

"That's right." Fang Xinsheng said with a smile, "Once the bargaining chip structure is re-adjusted in place, it will not be far from a new market. On the contrary...the negative decline mode of blunt knives will only prolong the market infinitely." Adjusting the time and space is also the most serious wear on the confidence and emotions of market investors. In simple terms, it is a rapid plunge mode that can make the market fall through quickly, but a continuous negative trend cannot do this at all. .”

"Hey... After Mr. Fang's explanation, I suddenly feel that the future seems to be quite optimistic." Mou Zhengxing said, "Maybe the market will really pick up again next month."

Fang Xinsheng thought for a while and said, "I'm not that optimistic. If the market is to reverse, I have to wait for the IPO restart to be fully realized."

"You mean that the first batch of new shares will be listed?" Liu Xin asked.

Fang Xinsheng nodded and responded: "Yes, after the IPO restarts, the real blood-pumping effect on the market will be reflected, and it should be almost the same."

"Then it seems...then it's time to compete for patience." Liu Xin said with a smile.

Mou Zhengxing responded: "Since we have to wait for the listing of new stocks after the new regulations, the market trend may usher in a reversal, so we may have to continue to reduce positions and avoid risks!"

"Continue to reduce!" Fang Xinsheng said, "Even if 2200 points is used as the final support point, the Shanghai Stock Exchange Index will still have a decline of at least 5 or 6 points. There is still at least 10% room for decline in the mainline areas of 'infrastructure' and 'state-owned enterprise reform' abandoned by the main funds of all parties. Our current positions are relatively heavy and have not reached the safe position area. Continue to reduce some. Our initiative in the future Sex will be stronger."

"Okay!" Hearing Fang Xinsheng's order, Mou Zhengxing hurriedly nodded in response.

Then, quickly send trading orders to many traders in the trading room.

And as his trading order was issued, at this time, the market time had slipped to 9:30, and the trading of the two markets, which had been stagnant for 5 minutes, started to beat again under the brief brewing of emotions.

I saw that under the huge time-sharing energy changes, the major indexes of the Shanghai Stock Exchange Index, Shenzhen Index, and ChiNext Index quickly fell further, and the decline expanded instantly. At the same time... the corresponding "infrastructure", "state-owned enterprise reform", "Internet finance ', 'Shanghai Free Trade Zone' several core hot main line areas, a number of related industry sector indexes, and their constituent stocks also fell rapidly one after another, and were completely abandoned by the main funds in the market.

At 9:31, the decline in the Shanghai stock index expanded to 1.2%, and Beixin Road Bridge and Sanmao in the Shanghai stock market fell by the limit.

At 9:32, the decline in the Shanghai stock index expanded to 1.3%, the decline in the ChiNext Index approached 1.5%, and the decline in Beijiang Communication Construction and Oriental Fortune expanded to 7%.

At 9:33, the three major "infrastructure" core industry sectors of real estate, architectural decoration, and building materials, and the related industry sector indexes all expanded to more than 2%. Among them, the core constituent stocks, such as Huaguo Construction, Huaguo MCC, Huaxin Cement , Conch Cement, Gemdale Group, Poly Real Estate and other stocks all fell rapidly.

At 9:34, the banking sector index in the "big finance" sector turned red, but the decline in the Shanghai stock index is still expanding.

At 9:35, the top ten popular stocks with the most attention in the market all showed a downward trend. The core industries of 'real estate', 'steel', 'building materials' and 'construction decoration' were the core industries of 'infrastructure', and the main capital The total net outflow reached 10 billion, and the outflow continued to accelerate as the transaction time passed.

at this time……

After the market opened sharply lower, it followed a rapid decline.

The vast number of investor groups inside and outside the market have completely collapsed in their hearts. All kinds of pessimistic voices of "cutting positions, stopping losses, and clearing positions" also instantly filled the discussion areas of major trading platforms, major stock investment exchange forums, major investment every corner of the community.

As if overnight, the 'extreme bear market' that most investors feared came back again.

But the "bull market", which once made the majority of investors excited and excited, has once again drifted away and quickly disappeared from the hearts of investors.

(End of this chapter)