Is it washing dishes or shipping if it rises quickly and falls slowly?
The so-called "washing dishes" means that the stock price will fall immediately after it rises. This price fluctuation is the result of a group of speculators controlling the price fluctuation through constant buying and selling. This kind of behavior will get investors into trouble, because they tend to buy stocks when prices rise, but they can't sell them when prices fall.
On the contrary, "shipping" means that when the stock price rises rapidly, it falls slowly and steadily, because a large number of investors are selling their stocks. This usually happens at the peak of the stock market. When most investors think that the price has peaked, they will sell a lot of stocks to make a profit.
So, is the big rise and slow decline washing dishes or shipping? There is no standard answer to this question because it depends on many different factors.
The following factors can explain this phenomenon:
1 capital inflow
The sharp rise and slow decline may be the result of capital flowing into the stock market. Many institutional investors, such as funds and banks, will invest in the stock market when they get a lot of money, which may lead to a sharp rise in stock prices in a short time. However, more and more investors lack confidence in this market, which will lead to a decline in prices.
2 investor sentiment
The price fluctuation in the stock market is also affected by investor sentiment. When investors feel optimistic or pessimistic, they tend to buy or sell stocks, thus affecting stock prices. When investors are optimistic, they will buy more stocks and the stock market will rise. However, when they feel pessimistic, they will sell shares, which will lead to a decline in share prices.
3 market supply and demand relationship
The stock price is also affected by the relationship between market supply and demand. When the stock supply exceeds the demand, the stock price falls. On the other hand, when the stock demand exceeds the supply, the stock price rises. Therefore, if the market exceeds supply, there will usually be a sharp rise and a slow decline.
4. Market fluctuation
The last factor is market fluctuation. The stock market usually experiences cyclical fluctuations, which may cause the stock price to rise and fall rapidly at a certain time. Although this fluctuation is unpredictable, it can affect the change of stock price.
In short, the phenomenon of rapid rise and slow decline depends on many factors, including capital inflow, investor sentiment, market supply and demand and market fluctuation. It is very important for investors to understand these factors and track the price changes of the stock market. Only by rationally analyzing the causes of stock price changes can we better grasp the investment opportunities and risks.