"Market Cycles Unveiled: The Patterns You Need to Know"

MARKET CYCLES

• correction means a 10% decline
• bear market means nearly a upto 20% decline
• stock market crash or recession 30 or more than 30% fall 

 1)first phase/euphoria stage

• this a stage where market is at its peak and irrational excitement drives prices to unsustainable levels during this stage everyone is happy and flying high .when you start seeing this blind happiness,you should prepare your investments for upcoming stock market crashes which brings all this euphoria back to reality

 

2)second phase/reckoning stage

• in this phase greedy and over anticipating investors or who are participated in the euphoria phase with low market knowledge gets a big catastrophic hit which tells the real truth and only the ones that know how to navigate will be able to hold their nerves and make some money this is a phase where the reality of overvaluation sets in triggering widespread panic and selloffs which results a Stock Market crash

3)third phase or recovery stage

• in this phase market starts to recover and rebuild rising from ashes of the crash .it usually pushes above and beyond the previous bull market highs                                     lesson [A BULL MARKET ALMOST ALWAYS FOLLOWS THE BEAR MARKET] AND INSTEAD OF TRYING TO TIME THE MARKET JUST HOLD FOR A LONG PERIOD OF TIME WHICH IS A KEY DIFFERENTIATORS BETWEEN THE VALUE INVESTOR AND NORMAL GUYS]

[DISCLAIMER this content is purely my opinion and taken from many resources .please try to do your own research or consult your financial advisor]