Recently, the event that the cryptocurrency Luna coin returned to zero overnight shocked the players in the coin circle.
As of May 16, Luna coins, known as “Maotai” in the virtual currency circle, had fallen to US $ Shenzhen Cereals Holdings Co.Ltd(000019) 72 each, while on April 5, each Luna coin was also priced at US $119.18. High volatility plus leverage equals explosives, and a large number of investors lose money in a month.
this is the most dangerous thing in investment. Virtual currencies, underperforming stocks, options with deep virtual value and “thousands of stocks” in Hong Kong stocks, which lack internal value support but are fried by funds, are all meat grinder of wealth. However, investors cannot resist the temptation of the rapid rise of asset prices with the nature of Ponzi scheme, and invest their wealth in these projects. The lack of cautious investment attitude or self perceived smart speculation not only leads to the disappearance of wealth overnight, but also faces the tragedy of family destruction and death
“Speculation always ends with a loud noise rather than a sob. People will have a chance to see the repetition of this law.” As John Kennedy Galbraith, author of a brief history of financial mania, said, the great crash will never come gently. People desperately want to escape, but it basically fails.
According to the statistics of China investment xiaohongshu, a brokerage, 18 A-shares have been delisted this year. Their market value at the peak of 2015 was as high as 200 billion yuan. Seven of them were fried by funds because they were involved in animation, insurance, mobile games and other outlets, with a market value of more than 10 billion yuan.
at present, the total market value of these 18 delisted stocks is only 10 billion yuan, and most of them are in the state of scarce buying and unlimited falling limit. After the wind stops, the rapidly melting market value of these stocks like ice cream will inevitably seriously hurt investors even if they stop losing. Moreover, many investors who are tempted by the tuyere to buy at a high level lack the ability to correct errors
return to zero risk, which is too heavy for investment
It is a very dangerous investment behavior for investors to follow the trend and buy when they only see the sharp rise in prices without studying the value behind it. Cryptocurrency, “old thousand shares”, “doomsday round” and “tuyere shares” are tempting traps when the price rises sharply. Investors who can’t resist the temptation often face the tragedy of returning to zero.
Luna coin is not an exception. After Naifei’s online play “squid game” became popular on the Internet, a “squid coin” opened the soaring mode after its release. It rose nearly 2400 times in the week at the beginning of November 2021, but then collapsed and returned to zero overnight. At the same time, the website of the squidgame cash and the accounts established by its creator on other social media disappeared out of thin air at the same time.
overseas has a website of death cryptocurrency, also known as cryptocurrency grave. According to the website, 1705 cryptocurrencies have died so far. The combination of high leverage and high volatility led to the instant extinction of wealth. It is undoubtedly a luxury to escape from the great crash. It is reported that due to the sharp decline of Luna currency, the prices of other virtual currencies fell together. On May 12, nearly 400000 people broke their positions in the currency circle
In the past 20 years or so, the “old cheat stock” in Hong Kong stocks has been a real wealth meat grinder. In fact, the playing method of “old thousand shares” has not been a secret for many years, but it is puzzling that there are still investors going one after another. The common cheating routine in the Hong Kong stock market is to lure retail investors into the market with various news, and then strangle retail investors by holding down the stock price, then offering shares at a large discount or offering shares, frequent joint stock and other means.
The “old thousand shares” of Hong Kong stocks lack liquidity all year round, so it is easy to buy and difficult to exit. A small amount of sales can smash individual stocks into a “deep pit” of 30-50%. “Old thousand stocks” usually first have a surge of more than 100% to attract attention, and then cooperate to release good news. It’s easy to buy but difficult to sell. Once tempted to get involved in “cheaters”, investors are subject to insufficient liquidity and are difficult to exit. They can only watch the funds in their accounts become less and less in the various means of “cheaters” players.
deep virtual options, especially the “doomsday round”, can be called the killer on the road of wealth. Taking the first Baosteel warrant listed on the Shanghai Stock Exchange in the split share structure reform in 2005 as an example, the warrant was listed at 1.263 yuan and delisted at 0.031 yuan. On the day of the “doomsday round”, the warrant plummeted from 0.211 yuan to 0.031 yuan, down 85%. The option of deep virtual value itself is a piece of waste paper, which has become a gambling tool for speculators and will inevitably return to zero
In addition, in the stock market, there are also significant risks in the speculation of underperforming stocks that have soared due to the tuyere. Statistics show that 18 stocks have been delisted this year. Sadly, the market value of these 18 companies was about 200 billion yuan during the peak period.
once you participate in Bo silly, don’t fantasize that you are not the last successor
Whether it is cryptocurrency or the “doomsday round”, in the speculative game, participants either do not realize what they are doing, or think that they are smart speculators and will not be the last successors. They can exit the market before the foam bursts.
Speculation is as old as a mountain, but it is difficult for the participants to get a good end. Even professional speculators such as Livermore end up poor, physically and mentally exhausted and commit suicide. As long as you don’t leave the card table, you can’t say you won. A return to zero event may lead to the return of all long-term speculative achievements to zero. Holding a torch through the explosive magazine, I often go to the cliff to see the scenery. I often walk at night. Sooner or later, I will encounter major risk events.
Just as in the tulip foam of the 17th century, when the boom came to an end, the dominant rules played a role again. Awakened people and anxious people began to get away, and no one knew the reason; Some people saw them sell and were anxious to sell, which triggered panic; Prices have fallen precipitously. You know, most of those speculators still buy tulips with mortgage loans, that is, using leverage, they face sudden property deprivation or even bankruptcy.
The same phenomenon can also be observed during the A-share earthquake in the summer of 2015. A large number of underperforming stocks seriously lacking in intrinsic value were hyped to the sky, which is unsustainable in itself. In addition, off-site funds were de leveraged. When the music stopped, a large number of funds rushed out of the door, but buying was rare, and finally turned into a cliff like decline.
in the huge earthquake market in 2015, only value investors can keep calm, because the stocks they hold have internal value support. Even if they encounter a short decline, they will eventually rebound back. And Bo silly investors are involved in the alternating vicious circle of deleveraging and individual stock decline
Once investors are involved in bosha, they should not imagine that they can escape cleverly before the foam bursts. Human greed made him fight hard before the music stopped, but once the music stopped, the market immediately entered a state of collapse. Even Newton, who was extremely smart, lost 20000 pounds during the South China Sea foam because of his repeated forays and outflows. “I can measure the motion of celestial bodies, but I can’t measure how crazy human beings are.”.
As John Kenneth Galbraith said, the market will eventually inevitably plummet under the speculative situation, which is destined not to come gently or gradually. When it comes, it has the ferocious face of disaster. This is because both groups of participants in speculation (those who do not know they are speculators and those who know they are speculators) will rush to flee the market.
“People who believe that the market will continue to rise through the sudden sell-off. Although they believe that the reason for the sudden rise in the market is not always the collapse of the market, they always think that the important reason for the sudden sell-off is to get out of the market.”
John Kenneth Galbraith said that speculation always ends with a loud noise rather than a sob. People will have the opportunity to see the frequent repetition of this law.
