Today's A-share market saw the Shanghai Composite Index reach a new high again, with 2777.47 points proving to be no obstacle. So, where will it fall next? Everyone can guess for themselves; the bottom area is definitely without suspense, the key is where the lowest point will be.

Xiao Fan's extreme expectation is a 10% drop, but it's uncertain whether it can stop the decline. In any case, the index issue is not a big concern anymore, but stocks still have a lot of uncertainty. Colleagues at the accounting firm are complaining that this year's annual audit is very troublesome, and some even have thoughts of resigning. On the surface, it's the stock prices that have fallen, but in reality, the fundamentals of companies have deteriorated rapidly in recent years.

A widespread decline! Setting new lows again.

With 4,700 stocks falling, in my personal view, Central Huijin can support the index by increasing its holdings in the CSI 300. But what about the individual stocks? Without additional funds, they will only continue to fall. The small and medium-sized innovation index is not to be feared either, as the heavyweight stocks are also components of the CSI 300. Will the future market follow this trend, with non-component stocks falling endlessly?

Next week, will we see the 2750 point mark? Honestly, I don't really want to know the lowest point now. Manage your positions well, and exit in time when there are floating profits. Any rise is not a signal to the right side; there are very few stocks that continue to rise for three days. Sell high when it rises, and wait for a pullback.

Advertisement

Xiao Fan is using a floating position to deal with the market conditions, and today there were not many emotional fluctuations, because the Hong Kong stock market is closed. A-shares, in any case, are just going up and down, still around the cost line. I'm hoping that this round of the small and medium-sized innovation index will rise, reducing the cost by 10%, and that's how my position in A-shares for this year will be; no profit has been made.

Without any surprises, it's easy to change the market direction next. Today was a significant volume decline, and without the participation of foreign capital, A-shares did not show a clear reduction in volume, indicating that there was a lot of capital selling high in the morning. What are we all afraid of?

Next week, will there be a larger-scale "storm"?Personal opinion: The possibility of a sharp drop in the stock market index is very slim now, but the situation of fluctuations will not change, and it remains difficult! The Mid-Autumn Festival is approaching, and a rebound is expected.

Therefore, if you have any trading plans, it's better to wait until next week. In today's general decline, don't make emotional decisions. Look over the weekend to see if there will be any positive news; the current market is hard to participate in.

It's crucial to manage your positions well. There's no need to be fully invested at this level; it's a bottoming market with many opportunities for volatility. Reducing costs and increasing share count is the goal, and there's no need to watch the market closely—just place orders with a relaxed attitude.

The stock market is like this: real good news is not disclosed to retail investors; it's only after a rise that you'll be informed. Obvious good news is meant to lure more buyers. Some people chased the rise in the morning and suffered intraday losses of several points.

Stay calm; not being calm can lead to more significant losses. I know many people are already fully invested and stuck. The options are either to lock in your position, uninstall the trading software, or cut your losses—no other choices.

In conclusion:

Fear not the market's fluctuations; use them to your advantage. There's not much risk of a sharp drop in the A-share market at this level. The bottom area is determined, and a rebound in the future is also certain. It's up to you to know how to endure until then.

Everyone has different strategies, and I understand the sentiments. I, too, have been through the wringer in the stock market, or I wouldn't have been able to preserve my principal over the past two years. If I had been fully invested in stocks, the outcome would have been the same. There are no experts in the stock market; there are only those who understand how to respect the market, follow objective laws, recognize cycles, and endure through them.

Investing carries risks; enter the market with caution!