Why do some people like to chase the sudden rise and fall of prices?
For example, there is something that usually sells for 90 to 100 yuan, but one day it suddenly rises to 105 yuan.
What does this mean?
That is, you can't buy it at the price of 90 to 100 yuan before, and now you have to spend more money. It also means that someone is willing to pay 5 yuan more to buy it. On the other hand, if the price drops to 85 yuan, it means that someone is in a hurry to sell it cheaply, but others don't want to buy it at a high price.
If you understand this, you will know why everyone likes to chase this kind of breakthrough market.
Because the price breaks through, it means that someone is willing to pay a higher price. Buying at this time is much faster than waiting for opportunities in the small range of price fluctuations.
But how do you know whether it is a real breakthrough or a fake one?
You can't just guess and buy it as soon as it breaks through. The risk is very high. But if it is a real big trend breakthrough, then the opportunity to make money is much greater. At this time, wait a little bit to see if the price will fall back a little before confirming, the risk will be smaller, but you may also miss a good opportunity to make money. If it is just pretending to break through, then sell it quickly and don't participate.
In fact, you can do whatever you want, mainly depending on how much risk you can accept. Just remember to set a bottom line for yourself, and stop playing when you lose to a certain extent, and protect your money. When buying and selling things, it is impossible to buy the cheapest and sell the most expensive every time, and it is impossible to guess right every time. Just follow your own way and rules, and don't be too greedy.
If you want to dig deeper in the currency circle, but can't find a clue
If you want to understand the information gap, whether it is a contract or spot, you can read my pinned article and learn more
