There is an old saying, “Once bitten by a snake, you are afraid of boar ropes for ten years”, which means that once bitten by a snake, people become very cautious, because at this point, the human brain becomes fearful and withdrawn. This phenomenon is extremely common in capital markets. Psychologically, this phenomenon is called the “snakebite effect”, which means that after suffering a loss, people are afraid, become too cautious and careful, and are more likely to be fearful than normal people, and are more likely to retreat. Expanding means that once people have suffered losses, they are less willing to take risks thereafter. For example, after experiencing economic losses, many people who are new to the stock market will stay away from the market vortex and set up regulations to avoid risks. From then on, they will no longer invest in stocks in this industry or will not participate in stock investment from now on.