Markets move in cycles, and understanding their psychology helps traders stay disciplined, manage risks, and make smarter decisions.
The Cycle:
🔸Euphoria: Prices rise, confidence grows, and traders rush to enter.
🔸Complacency & Anxiety: Momentum slows and uncertainty creeps in.
🔸Capitulation & Reevaluation: Prices fall, leading to cautious decision-making.
🔸Hope & Recovery: Sentiment stabilizes as traders look for new opportunities.
Have you experienced these market cycles firsthand? What strategies help you stay focused and disciplined?