Suddenly I can understand why many investors lose money in the bull market.
In a bear market, investors who are already losing money may continue to do so, and even more losses will not bring much change. For investors who should not be trapped, they have already adopted stop-loss and other strategies and maintained relative stability.
However, the situation is completely different in a bull market. The market has given investors hope, and many will quickly add to their positions. When the market pulls back, some investors may be overconfident, operate with full positions, or even use leverage to trade. When the market is volatile but still maintaining an upward trend, investors using leveraged trading may further increase their positions.
However, once the market falls sharply and triggers panic, many investors may choose to rush to stop losses and clear positions. Under such circumstances, when the market bottomed out and gradually recovered, they missed the rising trend, resulting in cutting meat at the bottom of the market and missing the opportunity to rebound.
This phenomenon reminds us that in a bull market, we need to be more rational and cautious to avoid blindly following the trend and excessive leverage transactions. An in-depth understanding of market trends and the development of scientific risk control strategies are the keys to success in the bull market.
