Why is the stock price the lowest when the volume is the lowest and the stock price the highest when the volume is the highest?

This is a principle of behavioral finance and stock market psychology.

Mainly people's trading emotions. In fact, this sentiment is widespread among retail investors and even institutional investors. Even when stocks rise, people's trading enthusiasm is generally high, especially in China, a market where only unilateral bulls can make money. When it rises, people's mood is optimistic and positive, and the public opinion of TV media is also very good, which has a strong demonstration effect of making money. Many people will be optimistic about the market outlook, and bears will have a strong decline. There is that kind of pent-up depression, which often makes him unwilling to wait any longer and quickly kills the market. In fact, to put it bluntly, it is a psychology of chasing up, especially the stocks you have observed for a long time and are hesitating to enter. He suddenly got up, and often most retail investors couldn't help it anymore.

Why do retail investors always lose? From the operating habits and psychology, it is not difficult to find a problem, that is, as long as the stock rises a little, retail investors will be very happy. I always feel that since they are all ready-made gains, it is better to be safe. When stocks fall, they tend to hold on tight. So many retail investors are, and finally the blind cat meets a dark horse, and the result is a proud profit of 10%. However, when they buy a bad stock, they always refuse to admit their losses and never go out again. Finally, it was stuck and fell 10%. He said, I didn't leave when I went up, so I'm not losing money now. Then, the stock fell by 20%, and then he said, I didn't leave until I fell 10%. Isn't it easier to make mistakes if I leave now? I will wait for the rebound, so I will wait until I am trapped.

Quilt for a long time, the market finally came, but he found out how other stocks soared, but mine didn't. In particular, I also observed it myself, and all the stocks I felt were rising sharply. At this time, it is quite exciting for him. They are often blind. I don't think I can wait any longer. Now the market is coming. I'm going to buy a big black horse and get all the money I lost before. So I went to buy stocks that have gone up a lot in active trading and got myself a Zhang Shen ticket.

I wonder if the landlord has studied these phenomena. This is something about financial behavior and psychology. People will have these bad operating mentality more or less. It is precisely because of his rise that the media cheered and often told you how good his performance was and how bright his future was. They have all gone up by 50%, and 50% waved to you before, so there are no people with stocks. As for the retail investors who hold shares, as he makes a fortune, as I said before, the impulse to keep profits is great. Just find a reason and they went out. Anyway, they will make a profit and not be ashamed. This will cause the enthusiasm of buyers and sellers to be extremely high when they rise, and it is easy to have the impulse to trade, so the transaction volume is naturally large and the stock price is naturally high.

When the stock fell, as I said before, the mentality of many retail investors is often unwilling to stop the loss in the whole process, so investors are not enthusiastic enough to trade and are generally unwilling to admit compensation. However, there is also a common phenomenon for currency holders, that is, 1. Retail investors are good at bargain hunting, and few people dare to bargain hunting. Most retail investors are reluctant to buy stocks on the way down, short positions or. Proud of their short positions, there are few decisive bargain hunters. 2. The position management of most retail investors is very poor. The landlord can make such a survey of the stock friends around him, that is, their positions. You will find that most retail investors don't understand position management. They don't know what kind of post is the most reasonable and what kind of post can be retired. They tend to be bullish on a stock and will bet on it all. Just like gambling, they won't consider it. So often when the stock price falls, many people want to bargain even if they know that this is the bottom. However, they are helpless. He has no money. Therefore, people who hold money continue to wait and see, unwilling to buy, or although they are optimistic, they have no money to buy, and investors are unwilling to rush out because of quilt cover, so the transaction is deserted. At that time, the stock price was often relatively cheap.

There will be more if you want to go deeper into this problem. There are many reasons in the stock market, which are actually worthy of your serious consideration. The operating style and mentality of retail investors and major funds in the market are worthy of careful study. These things are quite invincible in judging the future trend of stock prices.

This question is very constructive and deserves a good answer.