Theoretically, the bottom and the top are opposite characteristics, and the method of judging the top can be the method of judging the bottom in turn. In fact, there will be subtle differences. The top main organization has a stronger desire to deliver goods than the bottom. The main force has a high profit at the top of the high position, and can pull the ship for shipment or smash the ship for shipment. The main force at the bottom is conservative. When there is a bottom signal in the market, if there is a chance for individual stocks to fall, the main force is more willing to smash the plate and get the goods. The parameter conditions at the bottom are much more complicated than those at the top.

Wrong judgment at the top will lose potential profits, and wrong judgment at the bottom may face a colder market and a crazier plunge, losing real money and seriously affecting investors' mentality and confidence. Some investors will die in the bottom area before dawn because their mentality can't hold on. Therefore, it is necessary to adopt a more rigorous attitude in bottom judgment and operation. The so-called "slow in at the bottom, fast out at the top".

Fundamental valuation method is used to judge the bottom and top of the general direction. According to the average reasonable valuation of the world capital market and the historical performance of A-shares, the angle of fundamental valuation has begun to show the complexity of the market bottom structure. In fact, the real composition of the bottom generally has to go through several steps: valuation bottom (or policy bottom), capital bottom and market bottom, and it can be finally formed through gradual confirmation.

Figure 1, Shanghai Composite Index

As shown in the figure: From June 2007 to June 2008, the index kept hitting new lows, but OTC funds kept entering the market, and there were policies.

The bottom can be judged and analyzed in advance, but the investment in operation is real money. Premature bargain-hunting may make retail investors face the last panic at the bottom of the downturn, and sometimes they will lose 30% in a short time after bargain-hunting mistakes, so they are more conservative and more stable than the top. For the master, the bottom is bought. If you can systematically master the operation strategies in different environments, you can also buy those leading fat stocks that start early after finding the bottom signal, or oversold rebound stocks. Thirdly, the top layer loses potential profits, while the bottom layer loses not only capital, but also mentality.

Stock selection in the bottom area is also important. Just like new entrants, stocks with large funds at the bottom are generally the best growth and the most promising in the future. Therefore, after buying a good stock at the bottom, the best operation is to hold shares. The second way is to operate around the stock band selected at the bottom. The worst thing is to constantly switch positions and exchange shares until the worst stock is finally bought at the top.