Being under heavy selling pressure will also cause the market to be adjusted. When encountering this situation, you should resolutely reduce or clear positions to prevent losses from becoming larger.
1. Why stocks rise and fall? The rise of stocks is mainly driven by funds. When funds are concentrated on a stock for speculation, the stock will easily rise or go up.
However, the personal strength of retail investors is relatively weak, and it is difficult to raise a stock with their own funds.
However, retail investors are the largest group in this market, and it is difficult for them to unite their thoughts on buying and selling stocks.
The increase in stock price and the size of the transaction documents are not factors that directly affect the increase in stock price.
The rise in stock prices depends on capital, but it cannot rise without active capital.
Active purchase of funds is a direct factor in the rise in stock prices.
Tickets with funds can jump up and down, and tickets with large funds can go up and down freely.
One ticket can move the stock price up or down, and some tickets can even go from the lower limit to the higher limit.
2. Specific situation: Most retail investors buy and sell stocks without losing money and wait to close their positions after misjudgment. However, these hot money institutions will cut off the stock the next day after misjudgment to reduce losses on the next opportunity.
When a stock goes up, everyone rushes in to raise the daily limit, and when a stock goes down, everyone rushes in to increase the daily limit.
Everyone insists on raising the limit or selling until the daily limit is reached, never considering why the daily line rises or falls, thus forming an inertial thinking, thinking that the hot money of institutions will follow it when it pulls up, and then run away if it breaks.
Follow the organization every day.
Generally, as long as there are enough funds, individual stocks can rise along with the theme, and then retail investors follow the trend and buy, while institutions try to sell.
Even if they make a mistake in judgment and cut the meat again, they will have a chance to make money back next time.
If they could do it like an institution, at least there wouldn't be deep traps.
Finally, the stock market rises and falls. The stock market has risky investments and requires caution. Investors must understand the basic knowledge about the stock market when investing, so as to avoid being trapped by the stock market.