The market is cyclical, and understanding its psychology helps traders maintain discipline, manage risk, and make more informed decisions.
Market cycles:
🔸Euphoria: Prices soar, confidence builds, and traders flock in.
🔸Complacency and anxiety: Momentum slows, uncertainty begins to set in.
🔸Surrender and reassessment: Prices fall, leading to cautious decision-making.
🔸Hope and recovery: Sentiment stabilizes, traders look for new opportunities.
Have you personally experienced these market cycles? What strategies helped you stay focused and disciplined?
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