[Red Envelope] Since the formation of this round's quantitative high point, more than 28 sectors have experienced declines exceeding 10%!

Since the trend high point formed near the beginning of the month index peak, there have been many industries with declines over 10%:

Small metals, industrial metals, new metal materials, military equipment, film and television theaters, precious metals, airports and shipping, steel, energy metals, gaming, general equipment, military electronics, motors, software development, construction machinery, chemical products, auto parts, building materials, automation equipment, IT services, cultural media, textile manufacturing, semiconductors, electronic chemicals, consumer electronics, education, rail transit equipment, specialized equipment…

Listing them all makes my mouth dry. As for various concepts and individual stocks, there are even more, and the declines are even larger.

This system has given a total of four signals: one high point, one small low point, another small high point—these three worked very well. The fourth time, the system indicated a very minor small low point, which then quickly invalidated, and a small position was immediately taken for a stop-loss. After the system’s signal invalidated, the effect was also good, avoiding a subsequent big drop.

Investing is very interesting. This fun is not only reflected in the sense of achievement after profits and avoiding losses but also in the fact that the market always repeats its own patterns. We can rely on a stable system to see through the logic behind rises and falls, without being driven by emotions.

The market will not always rise unilaterally, nor will it always decline indiscriminately. After gains, there is a correction; after declines, there is a recovery. Essentially, these are mean reversion. What is truly valuable is to stick to your rules amid chaos and volatility—know when to reduce positions without greed, admit mistakes without stubbornness, and wait patiently without impatience.

Sometimes the system will also have small-level failures, which is perfectly normal. Tolerance and correction are part of trading. Being able to accept small failures calmly, decisively execute stop-losses, and not deny the entire system because of them are key to surviving and thriving in the long run.

Compared to short-term gains and losses, what is more reassuring is that no matter how extreme the market segmentation or how intense the volatility, we always have a method, a bottom line, and a rhythm. We do not gamble on luck or rely on feelings but follow the buy and sell signals provided by the system to do the right and high-probability things. This is the longest-lasting and most solid joy of investing.