The most discussed topic recently is bottom-fishing.

The market is divided into two clear factions regarding bottom-fishing.

One faction is firmly bullish, buying every day, and bottom-fishing every day when the market hits a new low.

The bulls are firmly optimistic about the A-share market, at least they are firmly bullish at the moment.

Their biggest slogan is to keep buying, always on the road to undervalued value.

However, buying at 3000, buying at 2900, it's unclear how the positions of these people are.

Because, theoretically, the bulls should have been fully invested at 3000 points, and when it comes to 2900, even if they want to reposition, it's hard to find money.

Since the bulls are already fully invested, their bottom-fishing actions are likely to be completed.

And those who have completed the bottom-fishing actions, theoretically, have no ability to be bullish anymore, because they have no bullets, and no capital to bottom-fish anymore.

Being firmly bullish is one thing, and having the ability to bottom-fish is another.Another faction is pessimistic and bearish, believing that the market has no bottom at all, with the index at 2900 today, 2800 tomorrow, and 2700 the day after tomorrow.

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At least from the current facts, the market seems to have no intention of hitting bottom.

However, the continuous selling behavior, or short-selling momentum, is rapidly weakening.

This can be seen from the recent fluctuations in the index and the reduction in trading volume.

A decrease in volume with a slight decline can be interpreted as a low volume indicating a low price, or it can be seen as a bottomless abyss.

The confidence at 3000 points, the confidence at 2900 points, and the confidence at 2800 points.

The bottomless abyss means it has nothing to do with bottom-fishing; the market has no bottom, only a series of new lows being hit repeatedly.

If the pessimists are waiting with an empty position, it is indeed a wise move. The most feared scenario is being fully invested and lying flat, while being extremely pessimistic.

When emotions erupt at a certain point, it is very likely that they will directly cut their losses and liquidate their positions.

Whether the pessimists will become major bears is also one of the key issues.It can be seen that in the market, whether it is calling for a rise or a fall, it is not necessarily the true bottom-fishing faction.

The true bottom-fishing faction should be hiding in a corner, always watching the changes in the market, waiting for the best opportunity.

When bottom-fishing, do not have distracting thoughts, otherwise, not only can you not bottom-fish, but you are also prone to lose more money.

Some people will ask, why lose more money?

Only after bottom-fishing can you lose money, those who do not bottom-fish at most earn less.

How many retail investors have died before dawn when bottom-fishing?

After the market forms a downward trend, bottom-fishing becomes extremely difficult.

Especially for the bottom-fishing of the technical faction, it is actually more difficult than those of the value faction.

It's just that many retail investors don't understand why it is more difficult for the technical faction to bottom-fish, theoretically it should be the technical faction that accurately bottom-fishes.The bottom is not meant to be copied by the technical analysts, nor can it be predicted in advance.

The bottom identified by technical analysts is at least 3%, or even 5%, higher than the lowest point of the bottom.

Technical signals for confirming the bottom will definitely appear later in time.

Apart from the main force behind the scenes who knows where the drop will be, no one else can precisely bottom-fish.

Whether it is the technical school or the value school, as long as it is a retail investor, it is impossible to achieve precise bottom-fishing.

Once you hesitate when bottom-fishing, or have many thoughts, it is easy to change your belief and end up buying high and selling low.

For example, when it is 3100, it is considered the bottom and you desperately bottom-fish.

But when it drops to 2900, you think it will fall even deeper here, so you stop loss and leave.

This is not just a loss of 200 points, but represents that you have overturned your own judgment, and turned from long to short at a lower position.

The risk of turning from long to short at a low position is self-evident.It's as if back then, when the index broke through the 1000 point mark and dropped to 998, a large number of people were selling off their stocks.

It's similar to when the index broke through the 2000 point mark, dropping to 1664, with a large number of people shouting that it would fall below the 1000 point mark, which is the same principle.

Any rational person would not choose to cut losses at a low position and blindly bottom-fish at a high position.

Nowadays, those who are still bottom-fishing must have their own views on the market.

The main logic still has two points.

For those who want to bottom-fish, or are currently bottom-fishing, they can find their own seat.

The first one is that the market valuation is relatively low.

The logic of value investors bottom-fishing is very simple: stocks are cheap and will eventually rise.

There are some value investors who are currently not heavily positioned and are eager to prepare for bottom-fishing.The current market valuation is quite friendly to value investors, being at a relatively low level.

The reason why smart value investors do not go all-in is because they understand the importance of building positions in batches.

Those who claim to be fully invested at the bottom are essentially speculators, not value investors.

The reason is simple: only speculators believe they can catch a bottom, while value investors firmly believe that the bottom is a range.

Therefore, the way value investors build positions is to buy a portion when they think the price is reasonable.

If the price continues to fall, they will add more positions, gradually until they are fully invested.

The real time to be fully invested is when the price has fallen to a level that is unexpected to value investors, resulting in a full position.

At present, value investors who still have cash in hand to add positions are the real value investors.

Those who are fully invested and lying flat may not have yet understood the essence of value investing.

The second point is that the market's oversold condition is obvious.There is another group that is trying to catch the bottom, which includes the speculators, the emotional traders, and the technical analysts.

In simple terms, these people are at least betting on a rebound.

For them, the reason for choosing to catch the bottom is that they believe the market has fallen to a point where there should be a round of the market trend.

After all, even a flood at 6000 points and a sharp drop at 5000 points also had decent rebounds along the way.

This round of decline has lasted for nearly a year, the adjustment of the big white horse has been more than 3 years, the science and innovation board has appeared a 10 consecutive monthly line of yin, and the photovoltaic plate has fallen by half and then halved again, there must be a rebound.

Over-sold is the reason why these investors choose to catch the bottom, even if the bottom is not seen at present.

The market has its own rules, and it will always rise after falling too much, which is definitely correct.

But how much is too much after falling too much, there is no consensus and standard.

So, these people also choose to buy more and more as the price falls, some start buying from 3200, some from 3100, some from 3000, and some from 2900.

Those who can survive are those who have a lower starting point for buying and manage their positions properly.In fact, no matter which school of thought one follows for bottom-fishing in the market, those who ultimately make money all share a core principle: managing their positions well.

If you want to bottom-fish, you must abandon the idea of going all-in, and the possibility of buying at the absolute lowest point.

Do not entertain any illusions, nor should you repeatedly waver in your convictions.

It is simply a matter of believing that the future will be better than the present, and that the current moment is a relatively low point, a range where value is underpriced.

The simpler a person is, the easier it is for them to do well in investing. The great way is simple; this might be what it means.