Why does the bull market rise slowly and then fall sharply (Part 2)
The formation of the bull market trend is not formed in one day. It is an upward trend formed after several consecutive years of decline and long-term sideways and grinding bottoms. The most obvious feature is that the weekly K-line and monthly K-line are both at In the ascending channel, the power of this trend will form a solid support for the stock market. Once it falls to an important support level, there will be a large influx of buying, whether it is new investors or short-term traders entering and exiting during a crash. Regardless of whether the funds are good, they will buy again.
This allows the bull market to quickly stabilize after a sharp decline, and then return to its previous doubts. In the game-driven and capital-driven model, it fluctuates up to K again, exceeds the last high point, and reaches a new high again, until the next time the chips become loose, and there is another plunge, and the cycle repeats. This is also the reason why many people in the bull market still have no money, because they have no worries about the bull market and dare not buy when the market is slowly rising. They also enter the market when the market is accelerating and then go up. After the sharp fall, he was afraid of being threatened and trapped himself on the mountain. Yu Ji cut the meat in a hurry. Just after the meat was cut, the stock market stabilized and fluctuated to reach new highs.
Repeat this cycle. As a result, the bull market did not get higher and higher, and the market already had a large amount of room for Shanghai, while many investors were still chasing prices and making profits. Finally, the bull market entered a frenzy stage and finally reached a climax, killing all the investors who had not made any money in the entire bull market. They were trapped, but at this time, these investors were unwilling to give up, because they only believed in the bull market at this time, so they waited and waited. After waiting, the market was in trouble for four or five years.
At this time, the bull market will have the characteristics of panic. In this process, only the firm believers in the bull market can take advantage of the high-quality chips in their hands year after year, experiencing both the process of slow rise and the process of sharp decline, and finally in the end You can earn lines by leaving the market when you are extremely enthusiastic. And most people can only lose money in the end. This is the reason for speculating on servers.
