There have been many famous people in history who went bankrupt after trying to bottom out!

Case One: Graham tried to bottom out after the stock market bubble burst in 1929, only to go bankrupt in 1931. The reason for failure was misjudging the bottom!

Case Two: Livermore, the god of speculation, went bankrupt twice while trying to bottom out back then. He kept heavily investing to bottom out during market adjustments. A well-known American economist, Fisher, foresaw the 1929 stock market bubble bursting but still bought what he thought were cheap stocks. Within a few days, he lost millions of dollars and became impoverished. The reason for failure was believing that excellent companies could weather the cycles and blindly buying without looking at the price.

Case Three: A famous stock commentator in Hong Kong, Cao Renchao, was bearish before the 1200 points crash in 1972 and almost got fired by his company. After the Hong Kong stock market rose to 1773 points in 1973, it fell sharply down to 400 points by 1974. Cao Renchao avoided the major bear market but became overconfident. In July 1974, when the Hong Kong stock market fell to 290 points, he thought he could bottom out and used all his savings of 500,000 HKD to buy Jardine Matheson, a blue-chip stock that dropped from 43 HKD during the 1973 stock market bubble to 5.8 HKD. Cao Renchao bought in completely, but in the following five months, the Hong Kong stock market fell again to 150 points, and Jardine Matheson fell to 1.1 HKD. In the end, Cao Renchao had to cut losses, losing more than 80%. These famous individuals were all harvested by the market.

What about ordinary people? What is most frustrating is that everything eventually rose back up, and even higher. If they hadn’t cut losses, hadn’t gone bankrupt, it could have been another myth. This is the investment market that always holds onto zero, selling off before taking off!