Currently, a large number of transactions still rely on human brains for subjective judgment. As long as it is a human-made transaction, it conforms to behavioral economics.

Human thoughts are difficult to change, human behavior patterns are hard to alter, and the logic behind human problem-solving is challenging to shift, which makes it difficult to change general objective laws.

For example, people often overestimate their analytical skills and information processing abilities, leading to frequent operations and heavy trading.

Frequent chasing of rises and selling on dips causes individuals to panic and sell at the floor price. What a great bull market it could have been, but unfortunately, the principal is gone.

Data shows that investors hold losing stocks for a much longer time than they hold profitable stocks.

Everyone has a strong tendency to realize profits, preferring to sell stocks that have already made money while continuing to hold onto losing stocks.

However, when most investors panic and cut their losses, it often marks the beginning of a bull market.

No pain, no gain.

This factual law is vividly demonstrated in this round of panic selling...