AI analyzed the most extreme scenario.

It also referenced the deleveraging decline process of the A-share market in 2015. Back then, I sold off roughly 70% of my position at the round number of 4500 points, held on until it dropped to just over 3000 points to start bottom-fishing, it eventually fell to 2850, I bottom-fished too early, and then left the market with a small profit after a rebound.

The Shanghai Composite Index fell 45%, the ChiNext fell a maximum of 55.9%, with seven or eight consecutive limit-down days. At the bottom, there were limit-up from limit-down days, followed by three consecutive limit-up days. It ruthlessly harvested the wealth of a generation, completely damaging the A-share market's vitality for 10 years.

Korean stock deleveraging is unrelated to fundamentals. Any deleveraging involves forced liquidation of leveraged positions, leading to a chain reaction of declines. The data received today shows a cumulative 1.2 million retail investors' leverage has triggered margin calls, accounting for about 8%. 320,000 to 360,000 accounts have been forcibly liquidated, accounting for about 2.5%.

AI simulated the most extreme deleveraging scenario, which is SK Hynix falling 60% from its peak. I think that's impossible, but a 50% drop is possible.

Regardless, if you're trapped in it, be prepared for the worst-case scenario. If you're bottom-fishing, consider the worst-case scenario (which likely won't happen) for your largest chunk of capital.

As for my own strategy, I don't hold long-term positions; I take the rebound and exit. Given this heavy blow to the memory sector, the price action emerging in the short term will definitely be weird, moving up and down irregularly.

If you don't have the mental fortitude for that, stepping aside to observe is the first choice, or just stick to QQQ and the giants you're familiar with.

For your reference.