The Truth Never Lies: Market Cycles and Coping Strategies

In the investment world, the truth never lies. If you are looking for excuses or reasons to overlook warning signs from the market, stop right now. History has proven one undeniable fact: the market always follows a certain cycle. Let's face the reality and prepare for the upcoming fluctuations. I. Unmissable Market Cycles Looking at history, we can easily see that the market often operates in a repetitive pattern: 2013: The market went through a (pump) boom, reached a (peak) and then crashed (crash). 2017: A similar cycle was repeated - from boom, peak to crash. 2021: Once again, the "pump, peak, crash" trend is witnessed. These numbers are not just random events but clear evidence of a cyclical pattern that has been replicated over the years. And it is worrisome to realize that similar signs are appearing right now. II. In-Depth Analysis of Market Model

1. "Pump, Peak, Crash" Model Pump (Explosion): This period marks a sharp increase in prices, attracting the attention of many investors and creating a FOMO (Fear Of Missing Out) wave. Peak (Peak): After prices have risen continuously, the market reaches a peak - this is the time when emotions become too hot, and most investors may start to show signs of panic. Crash (Collapse): When the peak is identified, the market enters a period of strong adjustment, causing many investors to lose their investment capital.
2. Important Factors: Support & Resistance In each cycle, support and resistance areas are tested multiple times. This indicates that: Support levels often keep prices from falling too deeply, providing a safe zone for investors. Resistance levels, on the other hand, are points where prices face difficulty in further increasing, and sometimes trap investors into overconfidence. III. History Never Repeats Exactly But Always Rhymes Although market cycles are not entirely the same in terms of numbers or timing, the general trend is always the same: A period of strong price increase. Impressive peak when market sentiment reaches its peak. Then comes a sharp decline phase as investors react excessively. This shows that, although the market may change in details, its essence is always the repetition of cycles. IV. Warning Message for Investors
3. Don't Get Caught up in FOMO and Panic FOMO (Fear Of Missing Out): When the market booms, it's easy to get caught up in the frenzy of blind investment. But remember, this is when the 'big players' are taking advantage of the emotions of newcomers.Panic: When the market crashes, don't let emotions dictate your decisions. Panic only leads to wrong decisions, missing the chance to recover when the market adjusts.
4. Be a Smart Investor Observing Patterns, Not Chasing Hype: Successful investors often do not get caught up in short-term trends but always take a holistic view from historical patterns. Being Prepared in Advance: Instead of waiting and reacting when a crash occurs, always have a contingency plan. This helps you avoid surprises and take advantage of opportunities when the market adjusts. V. Conclusion: Preparation Is the Key History has shown us that market cycles are inevitable. From 2013, 2017 to 2021, each cycle has proven that price surges always come with the risk of collapse. And currently, there are signs that this cycle is repeating. The main message is: Stay alert and don't let emotions dominate. Follow historical patterns to predict and prepare better for upcoming fluctuations. Don't let FOMO or panic hinder your ability to make smart decisions. Advice for you: Remember and prepare from now on, because when the next cycle occurs, only the prepared investors can safely and effectively weather the storm.