Founder & CEO of IdeaFeX, PhD in Strategic Management
Jiulin Teng, PhD
As long as there’s still hope, there’s still disappointments to come.
Bottom is where the market no longer bounces.
Investors are more cautious in the beginning of a market cycle but start to chase undelivered promises once they become euphoric.
Fundamentals drive recovery from the previous crash, while speculation leads the market to the next crash.
Have a “panic button” contingency plan.
Avoid rash decisions under stress
The market won’t crash when everyone is screaming “crash”.
If you refuse to ride the tide because the market is stupid, you're more stupid than the market.
Reduce your exposure when news hit and the market is processing the information.
If you miss the top, get out at the first rebound.
As more people give up, trend reversal becomes a self-fulfilling prophecy.
Listen to people’s reasoning, not their conclusions.
Make your own decision and hold yourself accountable.
Set strict rules to cut losses.
Don't think your analysis is "more right" than the irrational market.
Don’t increase positions as price moves; lock in your profits.