Investors are inclined to become over-enthusiastic during a bullish phase on the stock market and to become despondent when the market declines.
In order to be a successful investor, it is important to distance yourself from the herd mentality and to take objective decisions based on fundamental reasons.
Contempt: According to the cycle, a bull market typically starts when a market is at a low and investors scorn stocks.
Doubt and suspicion: They try to decide whether what they have left should be invested in a safe haven, such as a money market fund. They've burnt their fingers on stocks,...
