The bull market is the main reason for retail investors to lose money. Since it is a big bull market, why do they lose money?
The reason may be the same as "good cards are the main reason for Texas Hold'em to lose money".
Because they got good cards, they bet heavily, and as a result, they lost more.
1. The bull market is the main reason for retail investors to lose money:
In a bull market, the market generally rises, and retail investors are easily driven by the "fear of missing out" (FOMO) to buy high.
Because the market rise seems risk-free, many retail investors ignore fundamental analysis and risk control strategies, and even leverage their investments.
However, the short-term prosperity brought by the bull market masks potential risks. When the market suddenly pulls back, overly optimistic retail investors are often caught off guard, resulting in huge losses.
2. Good cards are the main reason for Texas Hold'em to lose money:
In Texas Hold'em, holding "good cards" will give people an illusion that the probability of success is extremely high, so many players tend to be more willing to bet more.
However, the complexity of Texas Hold'em lies in the opponent's strategy and the development of the public cards. Good cards in hand may no longer be advantageous after the public cards appear.
Players ignore other possibilities due to overconfidence, resulting in losses in the process of aggressive betting.
In these two situations, people relax their vigilance when facing seemingly "favorable conditions" and ignore the inherent uncertainty and the importance of risk control.
Therefore, it is not the bull market itself or good cards that cause losses, but the behavior of overconfidence and ignoring risk control that is amplified in these environments.
In summary, in the case of a bull market and good cards, ignoring risks and placing heavy bets will lead to greater losses