Every stock market of the world is driven by human perception!
Initially, when the price of stock/commodity/asset is low (perceived) people buy in Hope that it will appreciate from here.
When there hope turns to reality, that is when price of that stock starts moving up! Greed sets in. During these two cycles there is a large clan of traders & investors who has missed the bus, these people and truly intelligent traders and analyst, explain the logic that its high time and the stock should be sold.. profits should be booked.. new fresh purchase is not a good idea! this is Skepticism.
When this word spreads in market at decent speed Fear creeps in. This eventually leads to Panic sell off of that stock. Soon we see lack of hope - despondency the stock falls steeply..
Eventually word of mouth spreads again about fair valuation and the stock gathers clouds of Hope again.. only to repeat the Basic Cycle..
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