/sci/ - Science & Math » Thread #13997608

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Anonymous Wed 22 Dec 21:41:59 2021 No.13997608 View Reply Original Report

Quoted By: >>13997654 >>13997708 >>13997781 >>13997869

what causes a market crash

what leads to people selling their stocks en masses all of a sudden?

Anonymous

Anonymous Wed 22 Dec 2021 21:42:30 No.13997609 Report

Quoted By:

Jews

Anonymous

Anonymous Wed 22 Dec 2021 21:51:48 No.13997654 Report

Quoted By:

>>13997608
Investor psychology.
>Meme stock starts to rise
>/biz/ nigger starts suffering from FOMO
>Dumps his entire 401k into it
>Hundreds of other /biz/ niggers do the same
>Stock rises
>Inducing more FOMO
>Cylce repeats
>Some institutions jump on
>Eventually something happens
>Stock is now massively over valued
>Maybe Christmas, people need a little extra cash, start closing their positions
>Stock dips
>Panic sell off ensues
>Institutional short pressure increase
>Stock dips further
>More sell off
>Cycle continues until price stabilise
It's a toy example, but that's the general idea.

Anonymous

Anonymous Wed 22 Dec 2021 22:02:47 No.13997708 Report

Quoted By: >>13998049

>>13997608
Two thirds of the value in stocks is unstable vaporware, 2 thirds of what you pay is for the privilege of being allowed to buy into some big corporation.
Its normal for a corporation with 1 billion in equity to be traded for 3 billion.

Anonymous

Anonymous Wed 22 Dec 2021 22:18:16 No.13997781 Report

Quoted By:

>>13997608
FUD

Anonymous

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Anonymous Wed 22 Dec 2021 22:33:50 No.13997869 Report

Quoted By:

>>13997608
confidence is a fragile thing and it erode very quickly

Anonymous

Anonymous Wed 22 Dec 2021 23:20:24 No.13998049 Report

Quoted By:

>>13997708
This guy kind of has the right idea. Dips aren't actually sell offs. Prices are maintained by various entities and they just stop buying.

Anonymous

Anonymous Wed 22 Dec 2021 23:20:58 No.13998051 Report

Quoted By:

The vast majority of stock trades are done by bots. People are only directly involved in a small number of trades.

Anonymous

Anonymous Wed 22 Dec 2021 23:27:45 No.13998074 Report

Quoted By:

Value of a stock price is based on people's beliefs.

If you think that other people think it'll go down, then you try to sell off. Others think the same, hence a crash

But then again 90% of the stock market is automated nowadays and a computer just sells whenever there's a bad trigger.

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