Today's stock market can be described as "thrilling," with the performance of A-shares being a classic case that could go down in history! As a seasoned investor who has been through many years, I have witnessed this "crazy" market behavior with my own eyes. You might still be savoring the high opening in the morning, but today's market was truly exciting and nerve-wracking. Let's discuss this stock market "roller coaster" ride.
A-shares soared in the morning: A mix of revelry and rationality
At the opening today, A-shares surged by 10%, an action that could be said to have ignited market sentiment. Why? Because the favorable policies after the National Day holiday have filled investors with confidence, and the market's emotions were instantly ignited, with everyone speculating that a bull market has arrived. In fact, the policy stimulus before the holiday did indeed push up the stock market, making investors not want to miss this round of opportunities.
Especially for those funds that missed the opportunity to enter during the holiday, they rushed into the market after the holiday, and even more people placed buy orders in advance, leading to a large influx of incremental funds into the market today. The morning surge filled the market with an atmosphere of excitement. However, this did not last long. After the opening, the market experienced a volume-adjusted correction, quickly sliding from a high position. Such a trend forces one to calm down and think.
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A50 and Hong Kong stocks plummet: The hidden danger behind the surge
While A-shares soared in the morning, A50 and Hong Kong stocks were unable to continue this strength and instead experienced a violent plunge during the session, with the decline exceeding 10% at one point. The reason for this large fluctuation is not complicated.
Firstly, A50 and Hong Kong stocks had risen too much in the previous period, already exceeding a reasonable range of increase. There is an unchanging rule in the stock market: after a significant rise, there must be a correction, and today's sharp decline is a manifestation of this market law.
Secondly, the outflow of funds intensified the selling pressure, causing the market to withstand greater fluctuations. The high opening and low closing of A-shares in the morning directly affected the performance of Hong Kong stocks and A50, leading to their synchronized decline.
Calmly face market fluctuations
There is a saying in the stock market: Do not be swayed by emotions; maintaining rationality is key. Although today's performance of A-shares is eye-catching, it does not mean that the market will continue this strong upward trend in the coming days.In fact, from the high opening to the pullback, the market has actually sent a signal: the crazy market is not sustainable. The stock market needs some adjustment, and funds also need to return to reason from the high-spirited emotions.
Investing in the stock market requires not only keen judgment but also a steady mindset. Don't be confused by the temporary ups and downs. Market fluctuations will always exist. The key is how to find your own investment rhythm in the fluctuations.
Summary
Today's market is like a financial storm, changing rapidly. In such a market, it is particularly important to remain calm and rational.
The risks and returns of the stock market are proportional. The more crazy the rise, the more cautious the operation is needed.
What will the future market trend be? No one can predict, but in every fluctuation, rational investors will always be the ultimate winners.
Remember, every step in the stock market should be based on your own cognition and judgment. Whether it's a rise or a fall, don't be led by short-term fluctuations. Today's market tells us a truth: although the stock market is crazy, what we need is a calm heart.
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