Mastering Market Cycles
Markets move in cycles, driven by psychology. Understanding these cycles helps traders stay disciplined and make informed decisions. The cycle consists of:
1. Euphoria: Prices surge, confidence grows.
2. Complacency & Anxiety: Momentum slows, uncertainty creeps in.
3. Capitulation & Reassessment: Prices decline, cautious decision-making.
4. Hope & Recovery: Sentiment stabilizes, new opportunities emerge.