The stock market, whether for full-time investors or those who occasionally buy a few shares for fun, the trend of the A-share market has left many investors in a panic. Those who are not holding any stocks want to enter the market, while those who are fully invested fear losses. Everyone is watching the market fluctuate, and their emotions are also up and down.

Low volume consolidation leaves people feeling uncertain

The stock market has always been volatile, which is common knowledge. However, recently, many investors have noticed that the trading volume of stocks has significantly shrunk. Many refer to this as "low volume consolidation." In simple terms, it means that the main funds are repeatedly fluctuating within the market, deliberately creating panic and causing unease.

This kind of fluctuation leaves investors unsure whether they should buy or sell. Those who are not holding any stocks see the market slowly warming up but fear being trapped if they enter; those who are fully invested worry about a sudden market decline and fear losing more. Therefore, everyone is very entangled. The funds in the stock market are not moving much, and the trading volume naturally shrinks.

Many people will ask, does low volume necessarily mean that the market is about to fall? Not necessarily. Low volume indicates that many people in the market are waiting and watching, unwilling to act rashly. The main funds, through consolidation, are trying to wash out those investors with unstable mindsets, take away their chips, and then raise the stock prices. So, low volume consolidation is not necessarily a bad thing.

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Rebound does not represent a trend reversal

In the past few days, after a period of adjustment, the market and the ChiNext index have shown a slight rebound. Many people feel that the rebound has come, and whether the market is about to warm up? Is the bull market coming? In fact, this is just a technical rebound and does not represent a change in the market trend. After the rebound, there may still be a continued decline.

The market rebound may be due to the excessive decline in the previous days, and investors psychologically feel a bit "oversold," so there will naturally be a rebound. However, this does not mean that the market's fundamentals have improved.

The intrinsic value of many companies is not high, and even some stocks marked as ST are on the verge of delisting. The stock prices of such companies, even if they rebound in the short term, are unlikely to see significant improvements in the long term. The market may rise, but it does not mean that all stocks will rise; many individual stocks will still decline, and some may even fall more severely.

The game between major shareholders and retail investorsMajor shareholders hold a large number of shares, and if they want to sell these shares, they must drive up the stock price to attract retail investors to take over. Only in this way can they successfully offload their shares. Many times, the money in the market is not for investment, but for "self-promotion," which is to create the illusion of rising prices, making retail investors believe that the market has recovered, and then they buy in large quantities. However, after retail investors take over, the stock price may fall quickly, causing many people to be trapped.

Therefore, when the market rebounds, investors should keep a clear head and not be easily confused by the rising market. Especially when major shareholders and main funds frequently take action, they should be even more cautious.

How to deal with the market of volume contraction and shaking:

1. Stay calm: Fluctuations in the stock market are normal, and volume contraction and shaking are essentially the market reshuffling. Don't rush to chase the market just because you see a rebound, and don't panic and cut your losses just because the stock price falls. Learn to control emotions and analyze calmly.

2. Diversify risks: Don't invest all your money in one stock. Appropriate diversification can reduce risks. Especially in this volatile market, diversification can effectively avoid losses caused by individual stock fluctuations.

3. Be cautious with short-term operations: In the market of volume contraction and shaking, the risks of short-term operations are very high. Unless you have a deep understanding of the market, do not easily engage in short-term trading. Especially after the rebound, you must be cautious to avoid being confused by the market's illusions.

4. Pay attention to the fundamentals: No matter how the market fluctuates, the fundamentals of a company are the key factors in determining the long-term trend of stock prices. Pay attention to whether the company has good performance support and growth potential. Stocks that are driven up by speculation are useless, no matter how much they rise, and will eventually return to their proper position.

Investment mentality is very important.

Many investors in the stock market are most afraid of losing control of their emotions. When the market rises, everyone rushes to chase the market; when the market falls, they immediately cut their losses and leave. In fact, investing in the stock market is a psychological battle. The people who really make money are often those who can maintain rationality and calmly face market fluctuations.

When the market is volatile, don't rush to enter or leave the market. The best strategy is to wait patiently for opportunities. If the fundamentals of the stocks in your hands are good and there are no major problems, don't panic because of a temporary decline; if your stocks have already risen a lot, you should also take profits in time and secure your gains.Conclusion

Opportunities in the stock market are always present, but risks are always accompanying. As an investor, the most important thing is to keep a clear mind and not be influenced by short-term fluctuations in judgment. In this volatile market, calmness, rationality, and patience are the keys to your success in the stock market.

Whether you are holding an empty position or a full position, it is important to understand that every fluctuation in the stock market coexists with opportunities and risks. To go far in the market, you need not only to be able to read the market but also to understand your own mentality. The ultimate winners are always those who can stand firm in the storm.