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The Market is Just a Mood Swing: How Human Psychology Screws with Market Sentiment (And Always…

  • Markets swing between two emotions - optimism and euphoria, followed by denial, panic, despair, and recovery.
  • Recognizing the emotional cycle is crucial - sell when everyone is euphoric and buy when everyone is panicking.
  • Diversify investments and think long-term to avoid putting everything on one opportunity and to ride out market fluctuations.
  • Accept the market cycle, manage risk, and stay invested for the long run to improve chances of success.

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