Bull markets are often the source of losses for ordinary investors. This seems to contradict our intuition, as bull markets mean rising stock prices and investors should be able to profit. However, overconfidence and neglect of risk control during bull markets often lead to losses for retail investors.
In a bull market, the market generally rises, and retail investors are easily influenced by FOMO (fear of missing out), blindly chasing up prices to buy. They often ignore fundamental analysis and risk control, even resorting to leverage to amplify their returns. However, the short-term prosperity of a bull market obscures potential risks, and once the market corrects, those overly optimistic retail investors may be caught off guard and suffer huge losses.
When faced with seemingly favorable conditions, people let their guard down and overlook the inherent uncertainty and the importance of risk control. Therefore, losses are not caused by the bull market itself, but rather amplified by overconfidence and neglect of risk control.
When opportunities arise, it is certainly possible to participate, but the key is to recognize your own role. Are you an investor or a speculator? Value investors theoretically prefer bear markets because they can buy tokens at low prices. Speculators must understand that the most dangerous thing is to mistake speculation for investment. #市场调整後的机会？
