In a highly speculative capital market, the biggest risk is that the price rises sharply, far beyond the reasonable price range. Whether it is the stock market, property market, foreign exchange market or raw material market, it is risky for prices to rise sharply beyond the reasonable price range.

If there is a bubble in the speculative market, it will burst one day. At the same time, because there is a developed financial derivatives market, if the price? If the price rises too high, there will be options trading and short selling operations (linking the income with the price decline, making profits when the price falls, and the more the price falls, the more the income will be). The expectation of high returns has boosted the inflation of the price bubble. The higher the price rises, the greater the risk of the bubble bursting.

So according to different investment methods, calculate a reasonable price. When the market price is equal to or lower than the reasonable price, investment is the safest. In addition, compared with the highest value in the past, the current price decline is of course important, but the present value and future value are more important.