Different Markets Require Different Strategies

Studies have revealed that the average investor makes decisions based on emotion more than logic – buying high on speculation and selling low when panic sets in.

Unfortunately, when many people make serious investment decisions during certain market phases, it's as if they are living in a directly opposite phase. Because of this, they end up missing the genuine opportunities presented by the current market cycle at that time.

Your entry, term of investment, and exit strategy are always heavily impacted by the market cycle you are in. So, the first step is to understand the cycle you are in and to strategize accordingly. As an investor, you can never change the mainstream direction of the market. You have to learn how to profit by traveling in the same direction.

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