legendary trader

Chapter 566

The trading time keeps passing, and the first half of the rice stock transaction soon passed, and the second half of the transaction is still in full swing. Huge amounts of wealth are transferred in the stock market through the medium of stocks. Sad, some people are cheering.

The Nasdaq continues to rise, and it has risen to around 2670 points at this time, but as the index continues to rise, it also means that some stock prices have risen a lot. Of course, there must be many stocks that have also fallen to the point of death I don't know anymore.

Qualcomm's stock price has risen to 21.3 million yuan. According to Chen Fan's intention, He Li and the others are already looking for opportunities to shake up the position. It is impossible for the stock price to keep rising. Now all the shareholders in the market are in a state of profit. Of course, At this time, there are no people who bought stocks just now.

The Nasdaq began to pull back after completing a wave of rising. The index temporarily bid farewell to 2670 points and began to fall slowly.

"It's now." Suddenly He Li whispered.

He was talking to the traders around him, but the words reached the ears of Chen Fan and Zheng Xiaopang, and they couldn't help but look back.

Then the sound of typing on the keyboard in the ears gradually became denser, and on the computer screen in front of him, the price of Qualcomm's stock price, which had been maintaining an upward trend, began to change.

A series of sales orders began to appear, big and small, from sparse to dense. Under the pressure of gradually increasing selling orders, Qualcomm's stock price quickly began to fall from 21.36 yuan, but now the downward trend of the upward channel The track is still at 21.22 yuan. The drop at this time has not been noticed by other investors in the market for a while, but they just think it is almost the same as before, and it is just a normal callback when it hits the upper track of the channel.

As the stock price continues to decline, active selling orders still have no tendency to decrease, but this is within the normal range. The herd effect in the financial market is still very serious, and many people make their own judgments based on changes in the market.

Humans are social animals, and it is impossible to ignore the reactions of those around them.

The same is true in investment, although it is repeatedly mentioned in the stock market sayings that only unique thinking can make money, but when it comes to real trading, most traders will consider the buying and selling orders on the market and use them as their trading guideline. Important information.

Because in their view, these buying and selling orders represent the views of the owners behind these accounts on the market. When everyone is bullish, what you can see is sparse selling orders or surging buying orders, and vice versa.

Therefore, after the continuous selling orders, it is obvious that some investors will also be affected by this and make their own decisions to follow suit.

Chen Fan looked at the dense sales orders, big and small. He didn't have the time to go to the backstage for transaction information, and he didn't bother to see which orders were made by He Li and others, and which ones were followed by other investors in the market. Anyway, it seems that a wave of selling stocks is forming on Qualcomm's disk.

In the capital market, "herd effect" means that in an investment group, individual investors always act according to the actions of other investors of the same type, buying when others buy, and selling when others sell.

There are other factors that lead to "herd effect". For example, some investors may think that others in the same group have an information advantage.

"Herding" may also be triggered by systemic mechanisms.For example, when a sudden drop in asset prices causes losses, some investors have to sell their holdings in order to meet margin calls or comply with trading rules.

When the market gradually comes out of the doldrums and investors are more enthusiastic about investing in stocks, the energy of individual investors accumulates rapidly, and it is easy to form a convergent herd effect. It also started a chain reaction, and they fled in panic. It is normal that the diving volume can be enlarged in this way.It's just that it's easy to kill the stock at the floor price at this time.

This is the fundamental reason why in a bull market, the rise is slow and the fall is fast, and the sell-off is often in place at one time.

Although many times, there are so-called elites who keep telling ordinary investors that under normal circumstances, a rapid decline is not the time to be out, but in fact this statement also depends on the situation. It is also wrong to sell down.

When there is an obvious reason to be bearish and is recognized by the market, it is time to sell down, at least to save a little capital, otherwise you may really lose your pants, especially now that more and more investors start When using financing and leverage.

When Chen Fan was immersed in his own thoughts at the moment, a flash of inspiration suddenly occurred, and he suddenly remembered that he seemed to have overlooked something, so he couldn't help but calm down and think carefully.

Gradually, Chen Fan's eyes began to light up, because he already knew what he was ignoring.

In the past, in order to protect myself, I thought about buying some media organizations such as newspapers, hoping to use the power of the media as a weapon for self-protection.

But now after getting in touch with Second Brother Wang and the others, I have been accepted into their small circle by them, and I already have a protective film, so I gradually don't pay much attention to this matter. Brick and mortar businesses seem troublesome and a complete waste of money.

However, just now, Chen Fan suddenly discovered that the chess piece he had placed at the beginning seemed to have more functions, but he hadn't thought about it in that direction before.

In fact, in addition to economic development and related economic data and national policies that have the greatest impact on the stock market, media organizations also have a huge impact on the market.

When some major investment actions are launched, the media often acts as the instigator of the herding effect. A rumor will become a recognized fact through newspapers, and an opinion can become public opinion through television.

Political tactics such as demonstrations, general election campaigns, and suppression of dissidents are all based on the herd effect.

But after thinking about it, Chen Fan still felt that using his current media organization to engage in such things seemed a little unethical and against his original intention.

"I can only write this down first, and if it is really necessary in the future, use it as a last resort."

Chen Fan warned himself so.

As for the Yikes company, because of the company's business reasons, Chen Fan is also happy to see some reports that contribute to major events, as long as it doesn't affect him. Voice out ideas to influence newspaper readers.

"It seems that in the future, I still need to pay more attention and support the development of media companies in the future."

Chen Fan thought to himself.

(End of this chapter)