Why do bull markets often experience crashes?

This is mainly due to violent washouts.

In a bull market, retail investors are more loyal and sticky. If they do not experience a crash, it is difficult to clean them out of the market. Sometimes, continuous crashes are even required to make most retail investors sell out.

Some people may ask, why do we have to clean out retail investors?

Isn't it good for everyone to make profits in the currency circle together?

In fact, if retail investors are not washed out without new capital inflows in the currency circle, the main force will need to spend a lot of money to raise the price of the currency.

Because in the process of raising the price, retail investors will choose to get off the bus once they make a profit, which will greatly increase the resistance faced by the main force, just like the main force is "carrying the sedan chair" for retail investors.

If retail investors are cleaned out by means such as crashes, and retail investors cut their losses and leave the market, the main force can not only realize profits, but also help to further raise the price of the currency in the later period.

In summary, the reason why there are many crashes in the bull market is that retail investors have a high stickiness.

Therefore, if the operating strategy is inappropriate during the bull market, the losses faced by the leeks may be even more serious.