Most of us are unaware of this powerful market psychology: Buy when everyone is Fearful, sell when everyone is Greedy. And this is an area where we can all make mistakes. The market speculates on people’s intuition. Corrections and consolidation occur when a buyer loses confidence and markets increase sharply when people are greedy.
Let’s understand how we can know when people are fearful and greedy. Well, to be honest, we are emotionally attached to the market and our emotions drive us to make impulsive decisions. We don’t pay attention to the patterns of the market and instead rely on our intuition. When we are buyers we don’t buy when the market is correcting and rely instead on a gut feeling which creates false signals that we should wait longer. And that’s why we always end up buying higher. Here fear is driving us emotionally.
When there is complete silence in the market, you should be the one buying.
As sellers, we always want more from the market and that is motivated by greed. Holding on to your assets whilst the market is greedy, is the biggest mistake a seller often makes. When everyone is a buyer, you should be selling. If you want to win most of the time, you should always be doing so against the market. Most sellers don’t sell when they are being offered an excellent price on their holdings, they are the ones who actually sell when the market takes correction, and they end up selling quite lower than the price they were originally being offered in the first place.
The number one rule of ‘Market Makers’ is always sell, when people are greedy and they are buyers when everyone is a seller.
This technique works most of the time because this is a universally accepted truth in every single financial market. A fearful seller and a greedy buyer are the ones on which monetary institutions feed on. So once we recognize this, we can recognize exactly the top of the market for the seller? And conversely, ascertain the local bottom of the market for the buyer to know when the correction has ended? In my opinion, no one in the world can know this exactly, But we can increase our chances of predicting the top and bottom of the market, with technical analysis & experience.
Whenever there is a sharp rally up there will be a larger degree of correction and the behavior of price in DHA Lahore Real Estate right after the pandemic was very impulsive and very swift so I believe there will be a larger degree of correction, prices will grind deeper and correct furthermore for some time. There was a very sharp jump in DHA Lahore Phase 6, 7, 8, and 9, at least 30-40% and somewhere it was 50- 70% and I believe if we average out the percentage and consider it overall 50% appreciation so there should be 30% correction, testing the local last lows and if we make a successful test of the lows and we retain our previous level then there will be New all-time high in the prices in the next 6 months.
Correction is not over yet but the fear is real in the market and the silence in DHA Lahore Real estate market is screaming a buy signal so Do you remember where to buy and sell?
“BUY WHEN EVERYONE IS FEARFUL, SELL WHEN EVERYONE IS GREEDY”
Professional Real Estate consultant since 2010 with having vast knowledge of the Real estate market psychology. I mainly focus on deep learning in Real estate for which I did a lot of research in my respective field for the last 5 years so I can have a competitive edge in the market.
I am passionate about my work and that strengthens me to learn new dimensions and innovate my work skills so I let my Clients stay ahead of the Normal herd by analyzing the market technically most of the time.