[Red Envelope] The bull market kills without bloodshed! Be careful, you might lose even faster than in a bear market.

Yesterday, almost all of the best-performing sectors were healthcare and medical/pharmaceutical, with sector leaders dominating the gainers screen. This is also one of the sectors we’ve重点 discussed before.

In the near term, individual stocks within sectors rotate extremely fast. Investors should either hold with a trend strategy or do band/interval rotation, strictly follow the system rules, don’t chase too much, and don’t linger in battles you should exit.

For different sectors and individual stocks, you need to be able to identify whether they’re a one-day (flash-in-the-pan) move, a three-to-five-day type of trading opportunity, a swing-trading pattern, or a long-term opportunity. Learn to quantify the size of their price action. The result of randomly moving without understanding is chasing breakouts and selling the bottom—getting repeatedly beaten.

In this kind of market environment, another mistake investors are most likely to make is letting short-term rises and falls lead them around by the nose. And those investors who don’t understand anything, and only know how to go from place to place begging “please teach me,” waiting to copy someone else’s homework—during these adjustments and rotations, their loss speed will be even faster than in a bear market.

This is one of the signs of “bloodless killing” in a bull market. Many people don’t lose much in a bear market, yet suffer severe losses during the bull market. This kind of mistake must be warned against and avoided.

Investors must always maintain a sense of reverence—especially in this year’s market. On the very first day of this year, we already said it: if you don’t understand something, you can do fewer trades, even leave this market, but in any case, don’t gamble on luck with a sense of chance. Investing is not like buying lottery tickets, and it’s not about guessing big or small. Remember this—be cautious.

Each of us should constantly remind ourselves: take the market as a mirror, and remind yourself not to make similar mistakes.

2026 is the Year of Rules.