Why do people lose money even in a bull market? Understand the essence in three minutes!!!
1. Underlying currents behind the surface glory
The seemingly rising 2.51% bullish line is actually a "false breakout with true temptation"—the closing price of 2653 is just below the middle Bollinger Band at 2654, like a high jumper's heel grazing the bar.
The highest point of 2692 appeared during the Asian afternoon trading session, a time usually filled with retail investors following the trend, like customers rushing in when a supermarket has a special offer.
The MACD red bar suddenly surged to 30.29, equivalent to a car's engine RPM gauge suddenly maxing out; excessive short-term effort can easily lead to stalling.
2. Three types of people are most likely to fall into traps
① Morning runners: They chase the rise upon seeing the morning surge, only to buy near 2690 around 9:00 am (equivalent to buying full-priced items as soon as the supermarket opens).
② Height phobics: They panic sell near 2630, missing out on the afternoon surge opportunity (like leaving the cinema early and missing the post-credit scene).
③ Greedy risk-takers: They heavily bet on breaking through 2700, only to be stuck at the 2650 level (similar to correcting answers on a multiple-choice exam at the last minute).
3. Hidden rules of the current market
The main players are playing the "elevator game": they push up to 2690 in the morning to attract followers, then push back to 2650 in the afternoon to clean out positions, just like a mall raises prices before offering discounts.
The key position of 2650 has become a psychological anchor: there are buy orders 10 points above this position and stop-loss orders 10 points below, forming a natural fluctuation zone.
The real action happens during the nighttime European and American trading sessions: pay attention to the volume K-line on the early morning of the 26th in the chart, as true directional choices often occur in the quiet of the night.
4. Ways for ordinary people to break through
Those trapped above 2700: Sell 1/3 of their position at 2690 daily, like a vending machine dispensing goods, while waiting for opportunities below 2550 to recover funds.
Newcomers just entering the market: Divide funds into three parts for morning, noon, and evening, placing orders at 2630/2600/2570, like shopping for groceries at different times.
All investors must do: Set 2620 as the stop-loss bottom line, equivalent to buying accidental insurance for the account.
Remember: The market always makes money for the early birds and takes it from the latecomers. Watch more and act less before 3 PM, focusing on whether 2650 can hold steadily for three consecutive K-lines (12 hours). Newcomers are advised to practice with 10% of their position to develop their trading sense, like practicing on a simulator before getting a driver's license. The market won't complete its movement in a day; keep some bullets ready to seize genuine opportunities.
If you still have concerns in this area, feel free to like and comment, and I will answer your questions!
