Bull market, it sounds very hot, it feels like a good time to make money, but in fact, it may also be the beginning of losing money! Isn't it strange that many people lose money not in the bear market, but in the "lively" bull market.
1. Chasing ups and downs: Just like following the trend, prices in the bull market soar, everyone is afraid of missing this "money-making express", so they squeeze in to buy at high points. But in the end, as soon as there is a slight disturbance in the market, these people are scared and sell at low points, and the money is lost.
2. Over-leverage: In the bull market, everyone is optimistic like chicken blood, thinking that leverage can make more money. Don't forget that leverage is a double-edged sword. Once the market fluctuates, the loss is also magnified, and it may be a blow to the account, and the loss is upside down.
3. Greedy psychology: In the bull market, asset prices are rising like a rocket, and many people are overwhelmed by greed and don't care about risks. Just thinking about making more money, and then the market changes, oh, the loss is so terrible!
4. Market uncertainty: Although the bull market looks beautiful overall, it is also turbulent, and there is a pullback from time to time. How can novices know whether it is a small wave or a big wave? If they are not careful, they will make the wrong decision.
5. Over-concentration of investment: In the bull market, many people like to bet their money on a few places, thinking that they can make more money. But what if these places do not perform well? The loss is not ordinary!
6. Information overload: In the bull market, there is information about investment opportunities everywhere, like a bombardment. Many people are confused by this information, unable to distinguish between true and false, and easily led by market sentiment and rumors, resulting in irrational investment decisions.
So, losing money in the bull market is really no joke. Once these factors come together, hey, the money just slips away quietly.
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