In a bull market, a crash is actually about 'kicking people out'!
Did you know that those shocking crashes in a bull market are not actually a sign that the market is collapsing, but rather that it's about 'kicking people out'? That's right, it's intentionally pushing some small investors out.
Think about it, during a bull market, everyone believes they can make money and rushes to buy. But this fills the market with people, and if the main players want to raise prices, they have to work really hard because as soon as the price rises, those small investors rush to sell, fearing they might earn less.
So what does ‘kicking people out’ mean? Simply put, the main players use crashes to scare those who are not strong-minded and have unsteady hands into quickly selling their holdings. This way, what remains in the market are only the large funds from the main players, and they can easily raise prices however they want.
As for those small investors who got 'kicked out', they become the 'sacrifices' of this game. It might sound a bit cruel, but that's the rule of the market.
So, the next time you see a crash in a bull market, don't be too quick to panic. This might just be the market 'kicking people out' to prepare for a big surge ahead. And those who can remain calm and not get scared away are often the ones who make the big money in the end.
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