子棋UVDAO|Oct 30, 2026 14:17
Why do we rush to determine "is this the bottom?" after a sudden negative event?
The bad news has just broken, losses are still being verified, and the impact hasn't been fully assessed, yet trading groups are already divided: one side calls for a market crash, the other calls for buying the dip.
The investigation report isn't even finished, but positions are already fully invested.
Because waiting is too agonizing, being out of the market fears missing out on a rebound, while holding positions fears further declines. People are eager to find a conclusion to trigger a trade.
However, after a sudden event, risk and price may not be digested simultaneously.
The first wave of decline might come from safe-haven selling, followed by observation of leverage liquidation, capital withdrawal, and whether other institutions are affected. A rebound might just be a temporary pause in selling pressure and short covering; whether the buying support will continue remains to be seen.
At this point, the most useful thing is to clearly define in advance: what new evidence will change your judgment? The situation being brought under control, capital outflows easing, and price retracements no longer making new lows are all more worthy of investigation than a simple "it's fallen so much, it should rebound."
Missing out on the first rebound can be the price of waiting for more complete information.
Always rushing to be the first to comment can bind you to your initial judgment, making it feel shameful to later change your mind or reduce your holdings.
Remember: In unexpected events, those who offer conclusions first tend to gain attention; those willing to revise their judgments based on evidence have a better chance of preserving their capital.
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