The market is cyclical; understanding its psychology helps traders maintain discipline, manage risk, and make more informed decisions.
Market Cycle:
🔸Euphoria: Prices soar, confidence grows, and traders flock in.
🔸Complacency and Anxiety: Momentum slows, uncertainty begins to emerge.
🔸Surrender and Reevaluation: Prices fall, leading to cautious decision-making.
🔸Hope and Recovery: Sentiment stabilizes, and traders look for new opportunities.
What stage do you think we are currently in? Personally, I feel we are in the surrender and reevaluation stage.