The Emotional Rollercoaster of Trading – Understanding the Market Cycle 🧠💹
📊 Full Explanation Trading isn’t just about charts and analysis — it’s also a psychological game🧠. The market doesn’t only move with economic data but also reacts to the collective emotions of its participants. This image clearly shows the emotional cycle every trader goes through. Let's break it down step by step: 1.Optimism 🙂📈 At the beginning, traders see opportunity. They believe the market will go up, and they're filled with hope and confidence. Small profits confirm their beliefs. 2. Excitement 🤩💰 After a few successful trades, excitement builds. Traders feel smarter and start thinking this could be their big break. 3. Thrill 🕺🔥 Markets continue to climb, and so do profits. This stage is dangerous — traders believe they "figured it out" and take bigger risks. Overconfidence kicks in. 4. Euphoria 😍🚀 The peak of emotion. Everyone is buying. The market seems unstoppable. This is when most new traders enter — but it's also where smart money exits. T...