$Advanced Micro Devices (AMD.US)$ Chasing high and selling low is a common but irrational investment behavior, mainly referring to investors blindly buying (chasing high) when stock or other asset prices rise, and selling (selling low) out of panic when prices fall. The specific meanings are as follows:
Chasing high prices.
• Definition: When the price is already relatively high or even close to the top, investors buy at a high price because they are afraid of 'missing out' on further gains.
• Consequences: Once the price experiences a pullback or reversal, investors may suffer significant losses.
Bear Market
• Definition: When the price drops significantly or approaches the bottom, investors sell at a low price due to fear of further decline.
• Consequence: After the price stabilizes and rebounds, investors may miss the opportunity for a rebound, while locking in losses.
Psychological reasons
• Herd mentality: seeing others making money, afraid of missing opportunities, so chasing high; seeing others selling off in panic, worried about continuing losses, so selling off.
• Emotion-driven: driven by greed to chase high prices, driven by fear to sell low, lacking rational judgement.
Example
• Chasing high: A certain stock rose from 10 yuan to 30 yuan, investors bought in because of the short-term rapid increase, but later fell back to 20 yuan, resulting in significant losses.
• Sell-off: a stock drops from 30 yuan to 10 yuan, investors worry about further decline and sell, resulting in a subsequent rebound to 20 yuan, missing profit opportunities.
Methods of response
1. Develop a plan: clearly define the price range for buying and selling to avoid emotional trading.
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Chasing high prices.
• Definition: When the price is already relatively high or even close to the top, investors buy at a high price because they are afraid of 'missing out' on further gains.
• Consequences: Once the price experiences a pullback or reversal, investors may suffer significant losses.
Bear Market
• Definition: When the price drops significantly or approaches the bottom, investors sell at a low price due to fear of further decline.
• Consequence: After the price stabilizes and rebounds, investors may miss the opportunity for a rebound, while locking in losses.
Psychological reasons
• Herd mentality: seeing others making money, afraid of missing opportunities, so chasing high; seeing others selling off in panic, worried about continuing losses, so selling off.
• Emotion-driven: driven by greed to chase high prices, driven by fear to sell low, lacking rational judgement.
Example
• Chasing high: A certain stock rose from 10 yuan to 30 yuan, investors bought in because of the short-term rapid increase, but later fell back to 20 yuan, resulting in significant losses.
• Sell-off: a stock drops from 30 yuan to 10 yuan, investors worry about further decline and sell, resulting in a subsequent rebound to 20 yuan, missing profit opportunities.
Methods of response
1. Develop a plan: clearly define the price range for buying and selling to avoid emotional trading.
...
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Zhu Jing
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$ProShares UltraPro QQQ ETF (TQQQ.US)$ Does this really have a long-lasting effect?
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$iShares 20+ Year Treasury Bond ETF (TLT.US)$
Looking at the chart, here is the trend analysis of TLT (USA treasury bond etf with over 20 years maturity):
1. Price level:
• The current price is around 94.18 and has experienced a rebound in the past few days.
• There is a clear support level above around 94.31 (resistance near historical highs), which may face resistance in the short term.
2. Moving average analysis:
• The purple 200-day moving average (MA200) is around 94.25, and the price has just approached and tested this trendline.
• The pink 50-day moving average (MA50) is near 92.50, and the price has recently crossed above the 50-day moving average.
• The moving average system shows that the short-term trend is improving, but the long-term moving average is still in a downward trend, indicating that the sustainability of the rebound still needs to be observed.
3. Volume:
• The volume expanded during the rebound, indicating a certain amount of funds participating.
• However, the recent volume has not significantly exceeded the previous high point, indicating that the strength of the rebound may be limited.
4. Patterns and indicators:
• The price in the chart rebounded from around 89.11, has risen for several days in a row, this V-shaped reversal preliminary shows the characteristics of a short-term bottom.
• The short-term uptrend line is well supported, but if there is a pullback, support may be found near the 50-day moving average (92.50 area).
5. Strategic Advice:
• If the price can break through...
Looking at the chart, here is the trend analysis of TLT (USA treasury bond etf with over 20 years maturity):
1. Price level:
• The current price is around 94.18 and has experienced a rebound in the past few days.
• There is a clear support level above around 94.31 (resistance near historical highs), which may face resistance in the short term.
2. Moving average analysis:
• The purple 200-day moving average (MA200) is around 94.25, and the price has just approached and tested this trendline.
• The pink 50-day moving average (MA50) is near 92.50, and the price has recently crossed above the 50-day moving average.
• The moving average system shows that the short-term trend is improving, but the long-term moving average is still in a downward trend, indicating that the sustainability of the rebound still needs to be observed.
3. Volume:
• The volume expanded during the rebound, indicating a certain amount of funds participating.
• However, the recent volume has not significantly exceeded the previous high point, indicating that the strength of the rebound may be limited.
4. Patterns and indicators:
• The price in the chart rebounded from around 89.11, has risen for several days in a row, this V-shaped reversal preliminary shows the characteristics of a short-term bottom.
• The short-term uptrend line is well supported, but if there is a pullback, support may be found near the 50-day moving average (92.50 area).
5. Strategic Advice:
• If the price can break through...
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$Advanced Micro Devices (AMD.US)$ This millennium-old sword, none of them are sharp.
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Zhu Jing
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$iShares 20+ Year Treasury Bond ETF (TLT.US)$ Who can tell me what's wrong again 😨
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Zhu Jing
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$Ecopetrol (EC.US)$ Initially brought this stock because recommended high dividends not sure wanna hold or not. since peoples are starting to go green, and fossil fuel is becoming lesser and lesser
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