A-share vaccine stocks plummeted,which is related to a rumor that many second-class vaccines are to be upgraded to first-class vaccines.If this news is true,it means that second-class vaccines with huge profit margins will lose their huge profits and become first-class vaccines with public welfare attributes and smaller profit margins.

Many vaccine companies have stated that they have not heard of this rumor and have not received any relevant notice.I personally think it is unlikely that second-class vaccines will be upgraded to first-class vaccines,at least not in the next few years.This is because it would increase the burden on the national medical insurance system.In the current economic downturn,it is also unlikely to expand the scope of medical insurance.

The stock prices of Shanghai Airport and Longi Green Energy also plummeted yesterday.The stock price of Shanghai Airport even hit the daily limit down yesterday.There were also negative news for each: Shanghai Airport's duty-free agreement is to be compromised,and Longi's technology is behind.

I generally ignore these rumors.However,since 2015,when A-shares vigorously launched margin trading,the A-share market has shown different characteristics from before: stocks at the technical bottom are very prone to sharp declines,even hitting the daily limit down!

For example,the aforementioned Longi Green Energy and Shanghai Airport were in a relatively bottom technical pattern before the sharp decline.Then,one day,they suddenly plummeted,breaking the technical pattern,and there was a huge volume of transactions.Before the launch of margin trading,few stocks had this situation.Generally,only stocks with poor performance and poor performance would have this situation.White horse stocks are generally adjusted with reduced volume at the bottom and will not have a huge volume of transactions.After the introduction of margin trading and short selling,the situation of a significant increase in trading volume at the bottom and even a sharp drop or a limit down is becoming more and more common.Moreover,the phenomenon of blue-chip stocks with high liquidity experiencing a sharp decline at the bottom is becoming increasingly widespread.This indicates that many funds prefer to use margin trading on blue-chip stocks.For example,if one has 500,000 yuan,they might use margin trading to borrow an additional 500,000 yuan on blue-chip stocks.

Therefore,once blue-chip stocks experience a continuous decline,the leveraged funds have to bear twice the drop.Many margin traders cannot withstand the decline and can only be forced to cut losses,which leads to a more fierce decline,and even the stock price may be hit to the limit down.In other words,margin traders have a significant role in accelerating the decline during a market downturn,even at the bottom position,the stock price may continue to plummet due to the margin traders' stop-loss.

I believe that the reduction of positions and stop-loss by margin traders is the reason why sectors such as pharmaceuticals and new energy,which are already at a low position,continue to plummet.It is evident that using leverage on blue-chip stocks at the bottom of the market also carries risks,and this strategy is not entirely reliable.

In general,the drawbacks of margin trading strategies outweigh the benefits.After using leverage,we do indeed have the opportunity to double our profits,but at the same time,we also have to bear the risk of our assets being wiped out and being erased by the market.It is like taking chestnuts out of the fire; when successful,you get an extra chestnut,but when you fail,you might burn your arm.The weight of the pros and cons is clear at a glance.

In the financial society,the failure of many individuals and enterprises stems from the use of leverage.For example,the current predicament of many real estate companies is mostly due to excessive financing and high leverage.Excessive borrowing will sooner or later lead to one's own predicament,which is an inevitable outcome.The world-famous speculator Livermore experienced three rises and falls in his life,mainly due to the excessive use of leverage.He succeeded because of leverage,and he failed because of leverage.

Regarding stock margin trading,I have two points of view:1.One should minimize the use of leverage,as the risks associated with it are too great.The inevitable outcome of frequent use of leverage is destruction.

2.After achieving significant investment success with the use of leverage,it is even more important to use it cautiously or even stop using it altogether.This way,at least the victories gained can be preserved.Remember,luck cannot always be on your side.