You must have heard a lot about market corrections, pullbacks, crashes and scams, but what do they really mean?

Let's use a simple potato story to explain.

Imagine you are selling potatoes in town. The price is stable and business is good. One day, a rumor suddenly spreads: "There will be a French fry festival, and the winner of the best French fry can win a big prize!" As soon as the news came out, everyone rushed to buy potatoes, demand increased, and prices rose accordingly. This situation is like a natural reaction to increased market demand.

Next, some merchants appeared. They bought a large amount of potatoes and deliberately created a shortage and raised the price. At this time, the price rose by 60%. But soon, the government intervened and announced that there was enough potatoes in the market. Everyone stopped panicking and the price corrected, falling by about 10%.

We call this phenomenon a "market adjustment." When the market overreacts, the price will correct and return to a more reasonable level.

However, new sellers appeared in the market. After hearing that the price of potatoes has increased, they came with more potatoes to sell. As the supply in the market increased, the price fell again, this time by 25%. This is what we call a "market pullback," a temporary drop in prices caused by new competition or increased supply.

But it doesn't end there. Suddenly, the government decides to import a lot of cheap potatoes. At this point, people start to panic and stop buying local potatoes. As a result, prices plummet by 50%. This is a "market crash" - a dramatic drop in prices caused by unexpected news or major events.

In the end, the truth is revealed: there was no so-called French fry festival, and the merchants just made up a lie to raise prices. Once the news spread, the market collapsed and prices almost went to zero. This is a classic "market scam," when the market is manipulated and people lose trust, prices will suffer a devastating drop.

So, is the current price fluctuation a normal market adjustment, a pullback, or a more serious crash? Or are we facing the potential risk of a scam?

We need to observe carefully, analyze rationally, keep a clear head, and not be swayed by market emotions.