⏳Waiting for a bull market... Part 2.
"Golden Rules" by Bob Farrell
2️⃣ Excessive movement in one direction will lead to the same movement in the opposite direction. Like a swing or a pendulum: the further you move it, the stronger it will come back. From one extreme to another - this is what you can say about the market when excessive growth ends in a strong fall.
3️⃣ Nothing lasts forever - movements are never constant. What was new 10 years ago is no longer so “cool” and popular today. Speculation has been migrating from one industry to another for decades, but it always comes down to one thing - the bubbles burst, growth ends, and it’s only a matter of time.
4️⃣ Exponential growth or decline in markets usually lasts longer than you expect, and corrections in them are not sideways. Growth or decline is not always logical and can be excessive. In this case, the correction is as rapid as the trend that preceded it.
