The phenomenon you mentioned is indeed very common in the stock market, especially during a bull market. The process of shaking out investors in a bull market often causes many investors to experience emotional fluctuations and decision-making challenges, leading some to ultimately miss out on opportunities or even suffer losses.
Firstly, the shakeout in a bull market is a strategy employed by market leaders to screen investors. By creating market fluctuations, the leaders can test investors' patience, determination, and risk tolerance. Investors who are easily swayed by market emotions and lack a firm investment philosophy often lose confidence during market fluctuations and ultimately choose to sell their stocks, thus getting 'shaken out'.
When these investors see stock prices rise again after a market correction, they may rush to buy at high prices out of fear of missing out. However, this chasing behavior often leads to them buying at too high a price, and once the market experiences a correction or adjustment, they may face significant losses.
In contrast, those who can firmly hold onto their stocks and are not influenced by market emotions tend to achieve greater returns during a bull market. They not only maintain their composure amid market fluctuations but also make rational investment decisions based on market trends and individual stock performance.
Moreover, the phenomenon you mentioned, where the main players in this round of the bull market are shaking out more aggressively and fewer people are making money, also reflects the complexity and uncertainty of the current stock market. With the constantly changing market environment and increasingly complex investor structure, volatility and risk in the stock market are also increasing. Therefore, investors need to analyze the market more cautiously, select individual stocks, and develop reasonable investment strategies.
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