Behavior follows market prices, unfortunately. Like fanatics with their sports teams, we prefer winning stocks to losing stocks. Winning stocks are rising. Losing stocks are not. And when the market is winning , excitement grows.

Nothing lasts forever. The best teams, like the longest bull markets, see their dynasties end. However, emotions are slow to change. Skepticism still sees dips as opportunities to get richer, but dips lead to false rallies, and lower lows. Each dip down compounds the losses. Doubt turns to fear. Those that bought at any price in the run up to the p... See more