Good news is actually a reward for those who bravely buy at low prices. Most investors tend to chase the rise after good news, and few dare to buy under the shadow of bad news. This constitutes an insurmountable psychological barrier in the market, a test carefully laid out by the dealer.
Finding buying opportunities in a downward trend is far from being covered by simple courage. Because most market declines are often accompanied by the bursting of bubbles, even if high-quality assets misjudged by the market are found, if there is a lack of effective position control and risk management, the fruits of the rebound may pass by the account income.
The real opportunity to enter the market is often hidden when everyone is afraid, hesitant, and confused. At this time, the dealer will carefully weave a series of plots: let the investors who reluctantly give up their love secretly rejoice to escape, let the bargain hunters who are waiting on the sidelines be afraid, and let the investors who hold on to their shares fall into despair.
As Templeton said, "Market turnarounds often quietly breed in the abyss of despair, stumble forward in half-belief and half-doubt, gradually improve amid public expectations, and finally end in excessive hope."