Bull cycle in the stock markets



Bad news phase
Action: accumulate good stocks at great prices 
Horrible news
People talking about it in office
SIP numbers dropping
No news

Excitement phase 
Action: keep foot in door to exit, safeguard capital
More sign ups for demat accounts
Accelerating SIP numbers

Herd Excitement Phase
Action: begin to take out weak growers
People talking about it in office
Cab drivers talking about stocks

Wake up alarms. Something bad happened 
Action: exit as many stocks as possible 
People are in disbelief. 
Stunned

Free fall 
Action: sit tight. 
Bad news starts. 
People panicking in office
People booking losses

Falling safe hit the floor
Action: start looking for stocks with high RSIvsNifty 
People saying they will never buy stocks again
Fall in SIP contributions hit lowest point in 52 weeks

Popular posts from this blog

The Travelling Checklist

Abundance vs Scarcity Mindset

How to ask for Budget