The reasons behind the sharp decline often stem from investors' habitual thinking and emotional responses, especially during a bull market. After each market adjustment, investors tend to believe that this is just a temporary pullback, and that the market will quickly recover and continue to rise. Therefore, whenever there is a market pullback, many speculators re-enter the market, trying to catch the next wave of increase.

This repetitive trading behavior causes investors to behave like Pavlov's dogs, forming a conditioned reflex. Every time the market pulls back, they instinctively become bullish and even increase their positions. As time goes on, their positions become heavier, and their confidence continues to grow.

Even when the market shows a clear downward trend, with declines possibly reaching 30% or 50%, some investors who are accustomed to trading in waves still hold onto the fantasy of a bull market, firmly believing that after the pullback, the market will reach new highs again.

However, when the market truly transitions into a bear market, these investors often realize the problem only after being continuously trapped. By that time, it is already too late to adjust their strategies or exit.