Have you ever heard of the famous Psychology of a Market Cycle? In a perfect case scenario, we would need to start following it since September2017, when everything became obvious. Let us hope that this time everything will be different.
What can we learn from the Psychology of a Market Cycle? First of all, we are already in the red zone, when panic gives way to prostration, hopelessness, and uncontrollable anger. You can make such conclusion after reading different Telegram channels and blogs. There is an important section of the economy which is called behavioral finance. The term “reflexivity of Soros” might be useful in this case.
Nowadays people come in from the cold and start their own businesses. Why now? A lot of new opportunities. Business has its own elements – target audience, market size, developed and prepared client base, good marketing, growing infrastructure and historical price levels. And people like Novogradets can return to the macro hedge business. But Roger Ver and Chinese whales can not do that. They will not go anywhere. Now all of us are checked for lice and understand who can survive in the storm. And if you were not ready to look at the bottom of the legendary chart, then maybe you were not ready to look into the abyss.
“Once you’ve experienced ridiculous gains like investing in crypto, it’s extremely difficult to go back to “safe” investments (that is, if you consider anything safe these days.) It’s kind of like snorting cocaine a year and a half and then trying to get your day going with chamomile tea instead. “
Probably not so easy to adjust. The only thing that puzzles so far – that if you focus on the geometry of the graph, then we need to be somewhere in the region of 3000 so that it becomes completely valid and it could be cautiously moved upwards.