Why do copycat stocks suffer repeated slashes?
In the ever-changing market, why do copycat stocks suffer repeated sharp declines, that is, "cut in half" or even "cut in half again"? The logic behind this is intriguing.
Hidden worries under the bull market carnival
If the fire of the bull market continues to spread, an indisputable fact is that the vast majority of people (about 90%) may miss the opportunity again and miss this feast.
The paradox of being trapped and missing out
The question arises: Will the trapped investors also miss the bull market? The answer is yes. Behind this, there is a profound principle of missing out.
The mystery of missing out: the shackles of risk aversion
When retail investors are stuck in the quagmire and face huge losses, they quietly plant the seeds of risk aversion in their hearts and build a solid psychological defense line. Once copycat stocks break free from their shackles and usher in the opportunity to unwind, most retail investors choose to leave in a hurry, fearing to repeat the same mistakes. Little do they know that this move is the beginning of missing out.
Conclusion
The manipulation of the main players, the fluctuations of the market, and the choices of retail investors have together woven a complex and wonderful financial picture. Perhaps it can make us more calm on the road of investment, avoid repeating the same mistakes, and seize our own bull market opportunities.