1. Before a bubble bursts, very few people know that it is a bubble.
From the psychological factor, human beings have a tendency that the recent happenings will occupy the largest proportion in their own information processing, so the recent, short-term crazy stock price rise will definitely have the largest positive impact on our decision-making. When an asset bubble is up, all people feel is a continuous rise, so they must scramble to get in.
By the same token, the recent crazy market declines will have a huge negative impact on our psychology. This leads to more selling causing panic selling.
People make decisions based on the information they already have and the new information they receive. For example, if your view of the market was neutral, then the continuous rise now provides you with new information, positive information about asset prices, so the decision to "buy" will soon dominate your mind, and your decision will further strengthen the back of the people behind the "positive information", so that they will not be able to buy. The first few months of the year, you'll be able to see that the market is still in a state of flux, and you'll be able to see that the market is still in a state of flux.
A few days ago, the major coin circle rumors of a "diagonal pull plate hair", known as the god control plate project ARP, yesterday red storm coin circle, because its K line was once legendary as "Super Mario diving smash plate method".
In fact, this is the dealer to take advantage of the human psychological factors: people tend to recent events will occupy the largest proportion of their information processing. A steady pull over a period of several days induces people to buy.
Laughing at Mr. Lai said SB's **** knowledge is also **** knowledge, well, you do not believe that it will go up, I pull to you believe. You don't have **** knowledge, I pull until you have **** knowledge.
Looking back actually investors rarely pay attention to the ARP stretch and trading depth, only to see the price in the continuous rise. Just blindly kill.
When reaching the dealer's expectations, a big dive. Both back to the flow of funds, have brought the advertising effect. The poor leeks were simply reduced to free salesmen.
2. When cobblers start talking to you about stocks, it's time for you to quit.
This is a Wall Street proverb that actually expresses a very profound financial logic.
When people who are usually completely uninterested in the stock market or cryptocurrency, they also start to be long on the stock market and cryptocurrency market, it means that all the views in this market have begun to converge. Because all views have converged, it also means - there will be no new money coming in. (It can also be interpreted as having reached its peak, and what goes around comes around.) Without new money coming in, there is no way to support further price increases. Then this is probably the time when the price will turn around and the bubble may burst.
In fact, the actual bubble is very difficult to recognize and very difficult to resist, but smart investors are still able to sniff out the clues from the market trend and the surrounding environment, and decisively leave the market. Different investors will have their own different methods of judgment.
For example, the trader commonly used "resistance", "fundamentals", "technical" and so on such financial and technical indicators to judge, there are many investors, will be The new money will be focused on the speed, the speed of the decline, will also reflect the trend of some should leave the market.
At the end of last year, even the district guards and the square dancers started to talk about blockchain, and even the big mothers started to invest in the primary market and participate in the blockchain conference. In fact, this is a signal that the bull market has reached its peak. It is also a signal that the old leeks are gradually leaving the market.