The script for every market cycle is almost the same:
① Doubt: Prices rise for a few days, but no one believes it; everyone is calling it a dead-cat bounce and saying to sell.
② Acceptance: The market hits a new high, analysts turn bullish, and retail investors board hesitantly, only half-convinced.
③ Excitement: Prices keep surging, people in the group start showing off their gains, and you begin to fear missing out.
④ Euphoria: Everyone on social media is talking about crypto, taxi drivers are recommending coins, and leverage is skyrocketing.
⑤ Denial: Prices start falling, and everyone says, “It’s a healthy correction—a chance to get in.”
⑥ Panic: Prices plunge day after day, and everyone rushes to cut their losses—but this is where the seeds of the next cycle are sown.
Take a look at which act you’re in right now. The big money-making opportunities are in ① and ⑥; the big losses happen in
③ and ④. You can’t eliminate emotions, but you can name them: if you know which act of the story you’re in, you’re
less likely to mistake an ending for a beginning.
What do you think? Share your experiences in the comments.