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Why is it called leek cutting?
Cutting leek, an online buzzword. It is a metaphor that institutions, funds and large households sell stocks, which leads to a sharp drop in the stock market (or individual stocks), ushering in new opportunities to open positions, and then re-opening positions at a low level, operating in a circular band and making profits.

The original intention of cutting leeks is that leeks need to be harvested during the vigorous growth period. As a popular online vocabulary, it means that in the stock market, some institutions, funds and large households sell their stocks, causing the stock market to plummet, and then create new opportunities to open positions, and then re-open positions at a low level, thus making repeated profits, while ordinary investors are like leeks.

Leek refers to the grassroots in the financial circle. Synonym for short-term memory. Usually, such people will be fooled by other so-called experts to buy financial products such as stocks and wealth management, and eventually end up losing money. This behavior of fooling leeks is called "cutting leeks".

Ways to avoid being "cut by leek"

Cutting leeks is usually used to describe retail investors. Because retail investors are at a disadvantage in the whole market, large households or experts sell stocks, and their money is harvested like leeks. Because retail investors are constantly entering the market, these leeks will grow after being cut. As a retail investor, if you want to avoid the fate of chopped leeks, you need to do the following:

1, high-risk investment products, can't touch. You need to bear all the margin losses yourself. Bank of China becomes the final payer, subject to the final settlement.

2. Don't 100% be superstitious about the house. Investing in houses has passed the era of where to buy and where to earn. Choosing cities, regions and sectors requires technical content and funds.

3. The lever can only be increased within the allowable range. Making money requires leverage. Without leverage, the return is slow and low. However, leveraged real estate has always said that you have to pay for the leverage you add.

The above contents refer to Baidu Encyclopedia-Cutting Leeks.