The market broke through 2800, reaching 2735, which means the game has entered its final stage.

Many people don't understand why this point is the last game, shouldn't it go towards 2600, 2500, or even 2400?

I have a few points to share with you.

Firstly, the market's accelerated sharp decline signifies the final stage of the game.

The market experienced a 130-point sharp drop in two days, from around 2890, directly to 2760, and on the 22nd, it directly dropped to 2735.

This accelerated sharp decline implies that a large number of chips are being quickly cleared, with a stampede-like sell-off.

The final stage of market competition is actually about getting cheap chips.

The stampede-like mutual killing often marks the final stage.

Moreover, the chips that come out of this stage are often passively reduced, and they are also the best and cheapest chips.

After a sharp drop, there is likely to be a sharp rise, which has already occurred once on the 18th.However, the sharp rise in the market on the 18th directly pulled the index back to around 2840, which was too fast to consume the space of about 80 points around 2760, leading to an unstable bottom.

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This final game must be a large-scale bullish line appearing after a range of fluctuations, as a sign of ending.

Secondly, the battle for the points is a battle for the prevention and control of systemic risk.

Why is it around 2750, many people are also puzzled, why can't it be 2700.

In the red line of systemic risk, there are actually several lines, but we don't know exactly where these lines are.

The first line is the large-scale financial derivative liquidation line.

The first to liquidate in the stock market crash is actually the financial derivatives with the highest leverage.

Some financial derivatives have already blown up when the index fell below 2900.

The battle to defend 2923 is actually just the main force's self-rescue when stepping on the first line.

Because this line will cause a lot of funds that subjectively look bullish on A-shares to blow up, which is a great blow to confidence.The second line is the massive financing leverage liquidation line.

In the absence of off-exchange financing, the leverage of financing usually does not exceed 5 times, and it is typically not more than 3 times under normal circumstances.

Private equity products are generally liquidated at 0.8 or 0.75, which is 4-5 times.

For retail investors, it usually does not exceed 1 time.

However, the decline in many stocks, calculated from 2021, has already exceeded 50%.

Financing liquidation can bring a large amount of mutual killing, and the forced liquidation of stocks can easily lead to a chain killing effect.

This line should be around 2750, which is why it has reached the point of 2850, and it has started to pour down, causing panic and trampling due to mutual killing, for fear of being late and blowing up the warehouse.

The 2735 defense battle this time is actually a game around this line.

The third line is the massive equity pledge liquidation line.

The last line is in the range of 2600-2700, which is the blowout line of major shareholders.The equity pledge of major shareholders, if a margin call occurs, implies that the actual control of many listed companies will change hands.

It is clear that this is a systemic financial risk.

Since the proportion of equity pledged, the pledge points, and the current decline in different companies are not the same, this range will not be small, but the safe point is within this space.

If there is a further decline, leading to a blow-up of listed companies, then a large amount of state-owned capital must come in to take over.

At present, when state-owned capital is still busy solving local debt issues, it is not allowed for these pillar listed companies of the local area to blow up.

Defending this margin line of major shareholders has become an inevitable battle to be fought.

At least, these major shareholders need to catch their breath, stabilize the stock price first, and release some of the pledges.

That is to say, even if the index is going to fall, it is only possible after releasing some systemic risks, otherwise the impact will be uncontrollable.

Third, the end of emotional game after repeated experiences of despair and helplessness.

In addition to the game of chips, the market will also go through round after round of emotional games.The game at this point is almost at the brink of emotional collapse.

After the New Year's Day, the seven consecutive declines led by the Science and Technology Innovation Board, coupled with the daily decline of 3,000 to 4,000 companies, and at the extreme, 5,000 individual stocks declining, have basically brought the market sentiment to the brink of collapse.

At the end of 2023, the hope brought by the market was instantly exhausted at the beginning of 2024.

On May 8 of last year, after the index reached its peak, there were two hopes brought by the policy at the end of July and the stamp duty at the end of August.

Then it was the rebound of 2923 at the end of October, and the rebound of 2882 at the end of December.

The rise of hope several times to the brink of despair, the emotional game has basically started to unify from divergence.

This unification refers to the collective pessimistic sentiment of retail investors fermenting, believing that the market is beyond salvation.

Every real bottom is to drive retail investors' emotions to the end, the stage of killing people and punishing the heart, and every time it is repeating the same drama.

Therefore, this market has entered the final stage of the game, and the result will be determined before the end of January.Back to the main point, let's talk about some serious matters.

At this stage, regardless of what the market is doing, there are several crucial points for investors to consider.

Firstly, one can switch positions, but not lose their chips.

At this stage, do not lose your chips.

Although we do not know when the market trend will come, it is imminent when it does.

The reason not to lose the chips is that they are very cheap.

Some people might say that they can keep up with the market trend and buy back the chips.

However, the market often leaves these people behind, as indecision is the nature of retail investors.

At this point, when it's time to tough it out, just bear it and endure some pressure, which is quite normal.

Of course, if you find some good tracks and want to adjust your positions, this is supported.Avoid the behavior of chasing rises and cutting losses. The rotation of hot spots itself relies on waiting, not on chasing rises and cutting losses.

Secondly, reduce gambling and do not use leverage.

The bottom is an area, not something that can be caught by copying every day.

At this stage, it is crucial to avoid aggressively using leverage to bottom-fish.

The reason not to use leverage is the same as the principle of bottom-fishing; if you enter too early, the losses will increase.

Do not use money that you cannot control, facing risks that you cannot bear.

In case the market experiences extreme situations, it will affect the mentality and emotions.

Third, be patient and wait, and the results will naturally be revealed.

At this stage, the real main forces have long looked down on the small chips in the hands of retail investors.

The main forces are engaged in large capital gambling, and the chips that come down from killing more and more.So, at this stage, there is basically nothing for retail investors to do; just observe.

The rise and fall of the current point you see is actually quite illusory, because significant bullish and bearish movements, and large fluctuations can occur within just a few trading days.

Once the bottom is formed, it won't last long, and retail investors won't be able to scoop up too many cheap shares at the bottom.

Victory or defeat will be determined sooner or later; just be patient and wait.

Gambling is a very interesting thing, but most people are in the midst of it, so they can't enjoy the fun.

Sometimes, by detaching oneself and looking at the entire market as a spectator, one can discover different things and may also achieve good results.