Advice - Watch the herd and do not follow in his footsteps
In general, the bull market begins when the market index reaches the bottom, and the bear market begins when the market index reaches the top. Experiments and results of analyzing the behavior of investors and dealers in the stock market have always shown that the herd of pessimistic bears and upbeat bulls always follow up and up, such as the continuation of day and night. The herd of pessimistic bears reaches a climax, turning into a herd of upbeat bulls.
Here the panic turns into greed, and greed for panic, after reaching the peak, just as the rush of the herd behind the affluence at high prices also turns into greed for the rapid gain into a panic of loss, pushing them towards selling what they previously bought at lower prices, and those are the moments that masters and experts deal in the stock market .
As the market recovers, and the investor buys a share out of optimism, and with the stock continuing to rise, the positive sentiments of the investor increase, so he feels happiness, fascination, and euphoria.
And when the stock’s height reaches the range of buying saturation, it begins to gradually decline, our feelings change from ecstasy to anxiety, then denial, then fear, then despair, then panic, then surrender to reality, then despondency with the utmost despair, and in the despondency stage, the stock’s decline has reached its range of selling saturation, and then returns Height, our feelings change again to hope and then optimism, and so on.
