🎭 The Psycholoy of a Market Cycle: Are you stuck on the emotional rollercoaster?
Do you always buy high and sell low? This chart tells why!
THE CYCLE OF EMOTIONS:
BOTTOM (Dec-Jan): As you're in Disbelief the rally won't work, smart money is accumulating in Dec during Hope and Optimism
THE RALLY (Feb-April): You feel the Thrill in March and then experience pure Euphoria in April. "I'm a genius! We're all going to be rich!" Am I right?
THE TOP (May-June): You get Complacent as you ignore the warnings, then hit Anxiety as your portfolio bleeds. "Why am I getting margin calls?"
THE DROP (July-Aug): It's pure Panic! "Everyone is selling, I have to get out!" You get out at the worst time as the whales buy your bags.
THE BOTTOM (Sept-Dec): You hit Depression. "My retirement is gone. I'm an idiot." But then, "Hope" emerges once prices stabilize.
THE HORRIBLE TRUTH:
90% of traders are emotional traders
You're programmed to do the OPPOSITE of what works
The market is designed to take money from the emotional and give it to the disciplined
BREAK THE CYCLE
Have a plan BEFORE you enter
Set stop losses (and actually use them!)
Take profits when everyone is greedy
Buy when there's blood on the streets
Remove emotion from tradingTrading question: Where are YOU in the cycle right now?
