### Breaking Down the Emotional Cycle:
1. Pullback After a Rally – A healthy correction shakes out weak hands.
2. Retail Panic – "The top is in!" → Fear of losing gains triggers mass selling.
3. Whale Accumulation – Smart money buys the dip while retail capitulates.
4. Sharp Rebound – Price surges, leaving sellers behind.
5. FOMO Kicks In – Retail chases the pump, buying back higher.
6. Parabolic Phase – Euphoria sets in ("This time is different!").
7. The Real Top – Complacency peaks → Market reverses violently.
### Key Insight:
- Tops are born in euphoria, not fear. When everyone is convinced "it only goes up," that’s the danger zone.
- Bottoms are born in despair. When capitulation hits, the smart money accumulates.
### How to Avoid the Trap:
✅ Zoom out – Corrections are normal in bull markets.
✅ Don’t trade emotions – Stick to a plan (DCA, take profits, rebalance).
✅ Watch sentiment – When social media is flooded with "To the moon!" posts, be cautious.
The market doesn’t reward the emotional—it rewards the disciplined. 🚀 Then crushes the reckless. 💥
