(snipped)
Guys like Warren Buffet tend to avoid selling in bear markets. People acting on emotions often end up losing money because of their fear of losing too much money, even though bear markets seldom last very long.
All bubbles are a bit hazy. If everyone knew it was a bubble, the bubble wouldn't have happened. So all you can do is ride it out, and afterwards you can say "oh shit that was a bubble, good thing I bought ages before it" or you can say "phew good thing I didn't sell during those rallies".
However, do be warned that it's very common in bubbles (and the end of bull markets) for there to be a bull trap right after a dip. It's a return to what you start thinking of as normal, but that doesn't tend to last.
Guys like Warren Buffet tend to avoid selling in bear markets. People acting on emotions often end up losing money because of their fear of losing too much money, even though bear markets seldom last very long.
All bubbles are a bit hazy. If everyone knew it was a bubble, the bubble wouldn't have happened. So all you can do is ride it out, and afterwards you can say "oh shit that was a bubble, good thing I bought ages before it" or you can say "phew good thing I didn't sell during those rallies".
However, do be warned that it's very common in bubbles (and the end of bull markets) for there to be a bull trap right after a dip. It's a return to what you start thinking of as normal, but that doesn't tend to last.
thanks for the addition but i was just giving a general meaning of the terms. of course there are a lot of things at play when it comes to markets and different movements that must be considered, it is never a simple buy now sell now kind of thing.
and i liked the word "encouraged to" buy or sell in their deffinitions which i also used in my comment.
