Why did the stock plummet?

The reasons for the stock crash are as follows:

There are major negative news in individual stocks, such as a performance storm in individual stocks or a major loss in performance, which leads to a sharp drop in individual stocks; Affected by the market and market conditions, when the market is depressed and the market dives, individual stocks are greatly affected by the market; The main force smashed or shipped.

Reason 1: Profit-taking caused the stock price to plummet. When the stock suddenly rises sharply and there is little correction in the middle, you can quickly accumulate a large number of profit-making discs. In the process of the rapid rise of the stock, it began to put a huge amount of money, but also walked out of the long shadow line, or there was a huge K line. When this happens, stocks need to be invested, and they are rarely sold during the rapid rise of stocks. They even think that this is a good sign for the future to continue to rise, and most investors begin to chase after buying. However, in the process of heavy volume, some people will definitely sell it, and retail investors will buy it, so only the main funds can be sold. Once the main funds are sold in large quantities, the stock rally will end immediately. When the upward trend stops, there will also be a wave of investors selling their stocks, and then there will be a lot of selling, which will lead to a sudden decline in stocks.

Reason 2: When the stock began to rebound upward, it began to increase in volume near the pressure level, but the increase was insufficient to narrow and even a negative line appeared. At this time, it means that people with funds above stocks began to sell stocks in large quantities, which led to the selling of stocks. It has surpassed the purchase of tickets, and the stock market plummeted at this time.

In stock investment, the bad news released by individual stocks will cause most retail investors to sell their stocks, which will lead to a sharp drop in stock prices. Bad news often leads to a general decline in the stock market. For example, the deterioration of listed companies' performance, bank tightening, rising bank interest rates, economic recession and inflation are all bad news.

When the market environment fluctuates greatly, it will cause the stock price to fall. For example, the overall decline in the market will inevitably lead to a decline in individual stock prices.