Many people misunderstand the market, thinking that it will be cost-effective if it falls, and it will rise back in a short time. So some people put forward a self-righteous fund buying strategy, that is, when the market plummets, they immediately buy optimistic funds, in order to make the funds gain income when the market rebounds. Actually, it's not. Buying when falling is actually a very dangerous thing, because most people can't judge whether the decline is a callback or a big drop, let alone how deep the decline is and how much your heart can bear. Generally, it is a rule to buy after a big drop and sell after a big rise. As for the specific operation, experience is needed.
The market does occasionally plummet without warning, and then rebound for a short time, but this is a very rare situation, provided that there is no major bad news in the market, or there is bad news, but it was later rumored. At this time, the market rebounded because there was an unexpected deviation in the market before, and now it just returned to normal.
The decline of the market is mostly accompanied by major bad news in the market, which has a significant adverse impact on the macro-economy or the future of the stock market. At the same time, these adverse effects can't be eliminated in a short time, so it will hit the mood and capital of the stock market, which will lead investors to be generally pessimistic about the future stock market and sell stocks to cash out. The market will continue to fall in a certain period of time in the future and remain at a low level, and there will be no rebound.
If you don't make a distinction, buy a fund immediately on the day when the market falls sharply, and it is very likely that you will buy it and stand guard on the top of the mountain. Therefore, the correct approach should be to observe for a few days to see if the market is likely to continue to fall, and then wait for the market to stabilize before buying funds.