Recent understanding of “fault tolerance rate” is becoming deeper

No matter which market, the process of confirming the bottom must be repetitive. Even if you want to “buy the dip,” you must prioritize the index rather than individual stocks. Many individual stocks look strong during the decline, but once a genuine rebound arrives, they start to underperform. Choosing the index can avoid this kind of pullback trap as much as possible, improving your win rate and operational fault tolerance.

The fault tolerance rate of single-stock positions is definitely much lower than that of the index.