The phenomenon where small actions or events can lead to significant and unpredictable consequences is often observed in financial markets and is closely related to the butterfly effect.
When investors make money during a rise in the financial markets, other observers think the investors must have made a smart decision, which leads the observers to invest their own money in the markets
stock prices going higher
Periods of calm and storminess
to advances in chaos theory
dynamic systems
Deterministic Nonperiodic Flow
Weather prediction models
Globalizateon continies to increace and capitall marcets cannect
improvements in technology
capital markets connect
The butterfly effect concept
The high degree on margin used by Chinese retails investor
the high degree of margin
program trading
Black Monday
Panic selling ensued
Asset prices can jump suddenly with no apparent cause