Example of stock market terminology: stock bubble
Stock market bubble refers to a situation in which the price of stocks in the stock market far exceeds their investment value. To put it simply, in a short period of time, stocks rise rapidly or even skyrocket, and their prices and intrinsic values ??show serious deviations. In this case, a stock market bubble will occur. Here I would like to share with you some stock market terminology called stock market bubble for your reference.
Causes of stock market bubbles:
1. The characteristics of virtualization technology in the stock market give investors a certain amount of room for imagination, and investors will have their own judgments and conjectures. , if there is some misunderstanding at this time due to the words of some authorities or some stock experts, relying on the powerful effect of the media, more people will be prompted to make wrong judgments, and a stock market bubble will form.
2. RMB appreciation will also cause the emergence of stock market bubbles. RMB appreciation will cause a large amount of funds to flow into the stock trading market. At this time, there will be many or even high amounts of liquid assets in the stock market, and stock market bubbles will appear. There is a high possibility that it will happen.
3. There are few products that can be traded by investment traders in the stock market. The short-selling mechanism is an important factor for the stable operation of the stock market. As far as the current stock market trading situation in China is concerned, the types of transactions are still It is relatively small, and there is a lack of certain futures trading or financial derivatives markets, which will also lead to the risk of stock market bubbles.
I think the emergence of stock market bubbles is a continuous systematic process, and it shows a unilateral upward trend. The rising reaction will make investors think that there is the possibility of continued growth, and then it will attract more people. Invest until the stock price moves too far away from the intrinsic value.
What is an economic bubble?
An economic bubble refers to a macroeconomic situation in which the value of assets exceeds that of physical operations and the ability to continue to develop is easily lost. Economic bubbles are often supported by a lot of speculative activities, which are essentially greed. Due to the lack of support for physical operations, its assets are like bubbles that are easy to burst, so it is called "economic bubble" in social economics. When an economic bubble develops to a certain extent, it often causes a rapid decline in property value due to market trends that support speculative activities or the destruction of myths and legends. This is called bubble bursting in economic terms.
Economic bubble, to put it simply, means that the economic situation is like a bubble, and the surface of prosperity cannot escape the end of destruction. Economic bubbles are usually accompanied by the rise and fall of product prices, but economic bubbles are not the rise and fall of product prices in the usual sense, but specifically refer to product prices caused by excessive speculation that seriously deviate from the value of the product, first skyrocketing and then The phenomenon of sharp decline is an inevitable trend in which social assets are over-concentrated in a certain unit, the same goods are constantly transferred and speculated, causing the unit to distort inflation in a short period of time, and the manufacturing unit declines in the long term due to lack of sufficient funds.
What is a long position?
A long position means that investors are optimistic about the stock market and expect the stock price to rise, so they buy the stock when the price is low and wait until the stock rises to a certain price. Sell ??it again to get the difference profit.
What are the characteristics of bulls?
1. Small stocks started to rise first, and new high prices continued to appear.
2. When bad news for the stock market spreads frequently, but the stock price cannot fall, it is a buying opportunity for bulls.
3. When good news is announced in newspapers and magazines, the stock price rises.
4. The stock price continues to rise sharply, then rebound slightly and then rise sharply.
5. Individual stocks continue to push up the index in a sector-wide manner.
6. Individuals are constantly gathering, and investors have a strong desire to pursue higher prices.
7. The number of new account openings continues to increase, and new funds continue to pour in.
8. Legal entities and large investors buy.
9. Ex-dividend and ex-rights stocks can quickly fill up with dividends or rights.
10. The moving averages are all arranged in a long position, and the daily, weekly, monthly and quarterly lines are arranged parallel and upward.
On the 11th and 6th, the RSI intervened between 50-90.
12. The overall economic situation has improved significantly, and good news announced by the government has spread frequently.
13. The local stock market and surrounding stock markets continue to rise simultaneously, and the inter-regional economy is showing an active trend.