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The social group’s response to a new type of thing There is generally a process of understanding, from doubt to half-belief, to belief, all the way to superstition. As time goes by, things continue to strengthen and prove the correctness of predictions. Later generations will slowly lose their own analytical ability and blindly follow the direction of the public. This is the so-called "herd mentality", which is especially common in the speculative industry. From the tulip scandal that occurred in the Netherlands in the 16th century to the Clivia craze in my country in the 1980s, from the wave of private illegal fund-raising to the high and low jumps of the stock market , after every storm, people look back and realize how naive and simple they were in the environment at that time. After one wave of market prices, we see the next wave of market prices, and after the next wave of market prices, we see higher market prices. All the money turns into numbers and flows from the crowd, beating drums and passing flowers, and no one believes that he is the last one. There is a proverb in the West: If God wants someone to die, he must first make someone crazy.
Of course, in reality, deaths after madness are only a minority. There are many times when this society is still sane, but it is not uncommon for people to occasionally go insane in transactions. Futures and stocks are a centralized trading market, and human psychology is also concentrated and amplified.
Generally speaking, following the trend is a golden rule for every trader, because the market trend is a game between the long and short parties...