Ouroboros News -

The text addresses the importance of understanding the psychology of market cycles to make smarter investment decisions. The financial market is characterized by four phases: accumulation, bullish, distribution and bearish, each with its own psychology. In the accumulation phase, savvy investors start buying assets while the general public is still not interested. In the bull phase, demand increases and prices rise rapidly, leading to a buying frenzy. In the distribution phase, prices start to fall as savvy investors take profits. And in the bearish phase, prices drop sharply before stabilizing.

Understanding these phases can help you make more informed investment decisions, such as selling assets in the distribution phase or buying undervalued assets in the bear phase. It is important to remember that market psychology is influenced by available information and information technologies, such as the internet and cell phones. Social networks and online investment platforms can create a frenzy of buying or selling assets, even when there are no fundamentals to justify the prices.

In this text, Lafayette from Ouroboros talks about the importance of technical analysis in the investment world. With easy access to investments via the internet and smartphones, technical analysis can help investors make informed decisions about when to buy or sell assets by identifying price patterns and trends. Furthermore, technical analysis can be automated through algorithms, making it a common technique among professional traders. However, it is important to remember that technical analysis is not a guarantee of investment success and it is necessary to maintain a solid risk management strategy to protect investments.