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Author: SOL Who Can't Understand
After losing 20 million, I finally understand that the key to investing in A-shares is to escape the top, and to buy the bottom in U.S. stocks. When investing in A-shares, the most important thing is to escape the top; when investing in U.S. stocks, the most important thing is to buy the bottom.
Escaping the top in A-shares, especially the major top, is the easiest and the most difficult. The reason it's considered easy is that the top of A-shares is a typical bustling peak; in hindsight, it's almost as if the words "major top" are written on the K-line chart.
The difficulty lies in the fact that in A-shares, you can only make money by going long, and since the stock market generally rises over the long term, escaping the top is akin to locking in gains. It doesn't generate profit by itself, and human nature is greedy.
In comparison, the most important thing in U.S. stocks is to buy the bottom. Looking at the market over the past 20 years, buying on dips is the most crucial investment rule.
In other words, if you've already invested money, just hold it steadily; the key question is when new money should buy the bottom. And in U.S. stocks, the easiest and most difficult part is also buying the bottom.
The reason why it's considered easy to容