Brother Shrimp talks about why the gradual decline of the dog stock is the most lethal

Today it dropped 5%

Tomorrow it drops 3%

The day after tomorrow it drops again%

Such small continuous declines,

Are completely within the psychological tolerance of retail investors

Continuous decline is like a river embankment slowly leaking water,

It won't cause too much panic

Only a straight-line drop, like a river embankment breaking, will cause a chaotic escape

That will lead to panic selling at all costs

Small declines are like boiling a frog in warm water

It makes retail investors see their losses deepening little by little every day

Their pain will intensify day by day

At this time, they will become more anxious

This can raise the expectation value

Thinking it has dropped for so many days, it should rise now

They will be even more impatient to recover their losses

But being too anxious will lead to losing rationality

Gamblers are like this, until all retail investors are left with nothing

At this time, continuously raising the stock price

Let them recover a bit first

Let retail investors feel that they have survived the process of being washed by the big players

They will then recklessly increase their positions

Lower the average price

Then follow the big players to sip some hot soup

Wait for these people to go all in, borrowing to enter the market

Then comes a sharp drop, causing everyone to start cutting losses

Once everyone has cut their losses, then continuously raise the price, letting retail investors chase in again

Everyone feels this method is like a dog stock

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