Briefly about trader behavior in the market cycle

As the psychology of traders and investors shows, after the start of the bull market, which began in November 2022, many initially denied the rise and did not recognize the upward trend. However, now the majority have abandoned caution and doubts, accepting reality. They follow the market momentum, trying to compensate for missed profits, recognizing the presence of a bull trend. This stage is usually the final stage of a rising market.

The next wave is likely to bring little profit to those who entered late, while those who invested at the market bottom and stuck to their goals will benefit from more favorable entry points.

Looking to the future, it can be said that similar behavior will repeat with the start of the trend reversal. Many will deny the emergence of a bear market, resisting any opinions about a change in direction. Recognition of the bear trend will only occur in its final stage, when the decline reaches at least 70%.

Such a cycle repeats in every market and will continue to repeat in future cycles.