...Retail traders usually after-the-fact responders, they don't pre-empt.
...When stocks keep going higher, they want to be investors (long term), when they go down, they no longer want to be investors and think like traders, while those who do unflinchingly, they become denialists and rest on hopium.
...A lot of dopamine when stocks go up, the thrills keep you there, even doubling down. Remorse when you don't sell after a good run to see it fall quickly, remorse when you sell and it goes higher. Can't win it all, just avoid losing and manage risk accordingly.
In the past, this has been a SELL SIGNAL for US stocks: Institutional investors cash levels DROPPED to 3.5%, the lowest in 15 YEARS. This comes when the market has NEVER been so overvalued. Investors are long stocks and short everything else. What could possibly go wrong? https://x.com/GlobalMktObserv/status/1891858875827024340
