In a bull market, it seems to be very prosperous, but there is a big plunge from time to time, which makes people terrified?
This is not a building that is about to collapse, but the market is playing a game of cleaning up the house
Why does the bull market always crash?
You may wonder, isn't the bull market rising all the way, why does it always fall?
In a bull market, small retail investors follow the trend and enter the market as soon as they see the fierce rise, for fear of missing the opportunity to make money.
But if some of them are not driven off by a sharp drop, then the big funds will have to spend a lot of money when raising prices.
Because once retail investors make money, they run faster than anyone else, and the market pressure is great!
What is "cleaning up the house"?
It means that the big investors scare away those undetermined retail investors through a sharp drop. Once they leave, the market becomes the world of the big investors, and they can control the price at will.
And retail investors become the victims of this game.
Why do we have to drive retail investors away?
It may sound a bit inhumane, but this is the rule of the game in the market. If these small retail investors are not driven away, the big investors will encounter great resistance when raising prices. Small retail investors make a little money and run away, and the results of the big investors' raising prices are stolen by them.
Therefore, by driving away retail investors through a sharp drop, big investors can not only make more money, but also make the subsequent gains smoother and unimpeded.
Next time you see a sharp drop in the bull market, don't be in a hurry to piss your pants. This may be the market "cleaning up the house" to prepare for the subsequent big rise!
And those investors who can hold their breath and don't sell easily can often laugh to the end and make a lot of money!
For the next layout direction, I will take everyone to aim at the profit opportunities of the cottage. There is no problem with the expected space of more than 10 times. Like + leave a message, and take you to layout the entire bull market together!
