There are several reasons for the stock crash. 1 is because the overall valuation of the stock is relatively high and needs to be adjusted. Then at this time, the stock will plummet. For example, the overall valuation of the liquor sector in the early stage is very high, which has exceeded the highest valuation in history. Then there will be great risks for them at this time. From this perspective, if the stock price is too high, it needs to fall, that is, plummet. This is one of the reasons for the stock crash. On the other hand, it is because of the changes in market conditions. Sometimes, after a market crash, such as a stock crash or fuse, the price of the whole stock will also fall. This plunge is often irreversible by manpower. When this happens face to face, you need to be especially vigilant. For personal income, reducing losses is the best way, and there is no need to pursue higher income.

Another reason is that policies will have a great impact on the stock market. For example, in the past, because the state introduced the policy of double reduction, it dealt a great blow to educational capital. For example, the share price of New Oriental plummeted overnight, so this situation will also lead to a stock market crash. The Internet in China was the same before, because the influence of policies led to a large number of adjustments of the Internet in China. It can be seen that policies have a great influence on the development of the stock market, and many times we need to look at the changes in policies to select stocks. This time is also called news. Whether the news is good, bad or bullish depends on investors' own judgment. For example, there was a wave of good news about liquor before, and then liquor ushered in a very good increase at that time.

So there are several reasons for the stock crash, which can be analyzed by yourself. Generally speaking, it is these reasons that will cause the stock to plummet. Of course, when the stock plummets, it is actually a very good time to buy. If you buy at this time, the cost of holding positions will be lower and you will get more benefits.