The Investor Sentiment Wheel

The Investor Sentiment Wheel The Cycle of Investor Sentiment versus The Investment Market Cycle I got my stocks !!! I'll increase my position at this bargain price. Damn, I missed the consolidation, I have to get in ! Euphoria Let's average down further. I'lIl buy at the next consolidation. Optimism Denial Market Peak highest price, best time to sell Iamalong-term investor.. It's still too early. I will watch the market... Fear The herd starts tuming bullish The herd starts Uncertainty tuming bearish Market Trough lowest price, best time to buy Panic Disinterest As soon as prices come back, I will sell. They haven't learnt their lessons. Agony It's hit its absolute bottom! You bought what??? I will never again buy stocks, end of story! Sources The Big Pkcture Blog John C. Lee, http://www.weeklyta.blogspot.de/ BMO Nesbitt Burns Investors mostly have short memories, Trustable Gold Visualised by Malin Sofrone (zygothismayahoo.com) show herd behaviour and don't like to adjust their own decisions made in the past. TRUSTABLE GOLD.com compare gold investments Enthusiasm Confidence Capitulation Depression