#MarketPullback what is it and how should an investor act?

In the world of investing, the term Market Pullback refers to a short-term decline in asset prices after a prolonged rise. It is a natural part of the market cycle, but for many investors it becomes a source of anxiety 😰. Let's understand what's behind this phenomenon and how to properly perceive it.

🧠 What is a Pullback?

Pullback is a temporary decline in price within a broader uptrend. Typically, the decline is between 5% and 10%. It is not a market crash, but rather a “breath before the next move up” 📊.

📌 Example: a stock goes up for a few weeks, then corrects 7% down - this is a pullback.

📉 But if the drop exceeds 20%, it's already called a bear market.

⚠️ Reasons for Pullbacks

Profit taking - investors close positions after a rise 💰

Macroeconomic news - GDP, inflation, rates 🏦

Geopolitics - conflicts, elections, sanctions 🌍

Technical levels - reaching resistances on charts 📈