Let’s do some pure speculation and see the approximate scope of this market pullback.
At present, market opinions are seriously divided. On the one hand, some people believe that it may fall below 25,000, while on the other hand, they believe that it may fall to 36,000 at most.
However, in reality we cannot accurately predict market trends. What we can do is not to insist too much on specific price points, but to pay close attention to market dynamics and changes in sentiment.
According to the current trend of market sentiment, we can see that even after the market fell, people still flocked to the market, and some even shouted "buy the bottom". This usually means the market hasn't bottomed out yet.
Generally speaking, there are usually three clear signs of a market bottom: 1. Sideways trading after the third (we are currently on the first) panic drop and subsequent weak rebound; 2. Starting from the high, The cumulative correction has reached 40%-50%, which is usually a critical range; 3. Multiple exchanges have experienced downtime, and at the same time, both long and short positions have frequently been liquidated.
Assuming that the periodic high of this wave of the market is approximately 49,000, then a correction within 30,000 may be a potential bottom range.
For those investors who have no positions at all, you cannot keep all your positions waiting for the so-called "market bottom."
Once you develop excessive reliance or expectations on a specific price, it is easy to become overly subjective and wishful thinking.
A more reasonable approach is to set a price range with a higher error tolerance. Within this approximate time period, you can gradually build or reduce your position. With this strategy, execution is usually smoother.
If you rely too much on a specific price point, you may hesitate when you get to that point and deviate from your original strategy.
After you miss that point, you may be even less willing to execute your original strategy.
This lack of discipline is often a mistake many investors make. Unfortunately, no one can help you except through constant self-reflection and training, and execute your investment strategy as firmly as you would a military operation.
Otherwise, you may not be able to execute your strategy effectively even in a bull market. As for chasing industry leaders or copycat companies, the same principle applies: Opportunities will always present themselves.
