“The probability of the bubble testing 140 again is very high, President Duan is most likely trapped this time,” “After all, the more he buys, the lower it gets, he can keep adding to his position to average down his cost, but ordinary people are likely finished,” “The bubble is a good stock, but technically speaking, it hasn’t dropped enough yet! It’s still a bit early to bottom fish! … The bottom is still unclear”

This is a series of comments from a reader after the article on August 7 titled “How Duan Yongping ‘Sold’ Bubble Mart.”

After looking at the summary of Duan Yongping’s investment Q&A by netizens, based on my understanding of Duan Yongping, it doesn’t seem like he has the concept of being “trapped.”

Generally, the understanding of being “trapped” by most people is that when an investor buys an asset at a certain price, if the price of that asset drops after they purchase it, they feel trapped because they see a “floating loss,” which creates a negative emotional response.

But as a true investor, when he buys an asset at a price, he believes that price is appropriate. If the price continues to drop after that, he thinks the price becomes even more appropriate and worth buying.

Throughout the entire process, he won’t care whether he has incurred a “floating loss,” he will only be happy if he has money to continue buying at a better price.

There is no psychological burden or negative emotions at all.

Many retail investors, when faced with such situations, will continue to buy. On the surface, it seems to lower the average cost, but essentially they want to continue deceiving themselves, wanting to lower the average cost to make themselves feel like they’re not losing so badly. Ideally, they want to reduce their average cost as close as possible to the recent low price, which makes them feel more at ease, and their “guilty feelings” are lessened.

But if they don’t have the money to continue buying or can’t lower the average cost, then this guilty feeling accumulates and weighs heavily on their hearts.

Throughout the entire process, these retail investors never contemplate whether the asset they invested in has undergone fundamental changes or if anything has seriously impacted its development amid price drops; rather, they focus solely on price fluctuations and market trends.

This is not investing; it is gambling.

Essentially, it’s the same as a gambler who loses money and seeks all means to find money or even borrow money to recoup losses.

The gambler does not consider whether the game they are participating in has any significance or whether they have the chance to profit in the long term.

So if ordinary people fail because of such operations, it’s not because investing has failed, but because they thought they were investing when in fact they were gambling and ended up failing.

How does Duan Yongping operate when the price of his purchased assets continues to drop?

In the Q&A, he clearly states: If he has money, he continues to buy; if he doesn’t have money, he continues to play basketball and live a leisurely life.

I believe this operation is also suitable for ordinary investors:

If you are truly here to invest, after buying an asset you have confidence in, and its price continues to drop, we too should buy more if we have money, and if we don’t have money, just don’t worry about it and continue our normal lives.

“Bottom fishing” also does not exist as an operation for Duan Yongping.

I still want to share the viewpoint that I often share:

Can bottom fishing and topping out be achieved?

Of course, they can be done, but that belongs to geniuses, not ordinary people, and certainly not to me.

If ordinary people occasionally achieve “bottom fishing” or “topping out,” it’s best to consider it as a gift from heaven, rather than viewing it as their own skill.

We ordinary people should completely abandon and eradicate the thoughts of “bottom fishing” and “topping out.” It brings nothing but harm to the vast majority of ordinary people.

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