The main purpose of bargain hunting is to make use of the cyclical fluctuation of the market, buy when the price is low, and sell when the market picks up, thus making a profit. However, bargain hunting is not always effective, because the bottom of the market is difficult to predict, and investors may buy at the wrong time, resulting in losses.
In order to successfully bargain-hunting, investors need to pay attention to market dynamics and analyze economic data, policy changes and industry trends, so as to bargain-hunting at an appropriate time. At the same time, they also need to set reasonable stop-loss points and profit targets to prevent losses from expanding and realize investment income.
It should be noted that bargain hunting is a high-risk investment strategy and is not suitable for all investors. Before bargain hunting, investors should make sure that they understand market risks, have certain investment knowledge and experience, and can bear possible losses.