Predicting the market is nearly impossible. Yet when there is a crash, we can somewhat predict what ‚could‘ happen based on past events, like for instance the market crash of 1929.

It all starts with an event that has a huge impact. Currently it’s the Corona-Virus that’s causing a lot of uncertainty as governments are forced to juggle the demands of our health and our economy.

In such a situation we want to be able to at least foreshadow what could happen next in order to adjust our behavior accordingly. From past events that lead to a market crash it is possible to identify a basic pattern that can be divided into 5 phases:

Phase 1 – Denial: Despite all the news about the event that could cause the economy to crash people need a certain time to realize what’s happening

Phase 2 – Panic: Once they realized that there is a real threat, they start to panic

Phase 3 – Exhaustion: After the first sell off people tend to believe that it’s over and start buying again which usually leads to a short up trend

Phase 4 – Realistic Judgement: Now people start to realize the long term effect and start selling again

Phase 5 – Resignation: Investors are losing faith which leads to a final sell off

Watch the full explanation here (use Chrome browser):

How to possibly predict the stock market, and make even more profits. Check this video how to learn that.

Posted by Lukas Xu on Thursday, 2 April 2020

 

Part 2:

I want to make money through investing in stocks. What to do next to get started. Watch today's video to learn what I do to make my fortune.

Posted by Lukas Xu on Saturday, 4 April 2020

 

Update (21 April 2019)

Is the Bear Rally over? Or is it still the time to buy? Should I sell? What to do now, check out today's video to find out yourself.

Posted by Lukas Xu on Tuesday, 21 April 2020