Thread by @intell_invest

The Elliott Wave Principle’s emotional cycles, aka mental states (actually traps), explained wave by wave.

A must read thread 🧵 below 👇

#elliottwave #tradingpsychology #TRADINGTIPS
#SPX #SPX500 $SPX #StockMarket #tradingadvice #tradingbias
#NASDAQ #NASDAQ100 #NDX

/1 First the Bull market’s psychological cycle: W-1 to 5.

W-1 : disbelief (It’s just another Bear market rally, don’t buy it! Wait for better days.)

W-2 : convinced (See, I told ya the markets would crash, you can’t trust those market makers. Bunch of “peeeep”.)

W-3 : Ignoring (it will soon pullback again, the fundamentals ain’t right just yet imho. I will wait for a better entry)

W-4: confirmation (see here’s the pullback, told ya. Now I’ll buy some! Patience pays off. Man, I am good. I can do this and become a pro, a full time trader.)

W-5: euphoria (look at me, I am a killer baby! I bought the dip. To the moon. This is so easy, I’ll be rich in no time! Don’t listen to the pros’ warnings. They just want to scare you out of your position so they can buy more. Bunch of scammers.)

/2 And now for the Bear market cycle after W-5 in the Bull market topped: W-a, -b, and -c.

W-a : disbelief (oh it’s just a pullback. I’ll hold through it or I’ll buy some more. It’s bargain hunting season after all.)

W-b: convinced (here we goooo! Glad I bought some more, who said you should never average down!?! Clowns.)

W-c : ignoring (I believe in it. Fundamentals are good, buy-n-hold wins in the end, they say), followed by despondency (what a POS, you can’t win, this game is rigged. Better sell now and get back in when things have “stabilized”. The tape is bad, news is bad, glad I am out).

/3 and by now it is back to the Bull market cycle… Rinse Lather Repeat… Ad infinitum… So, which state are you currently in? Let me know in a comment below 👇

/4 Don’t believe me?! Check out a real-life example video: