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Investor Business Cycle
The successful investor has studied the investor business cycle diligently. Otherwise, he succumbs to buying stocks high and selling stocks low. The Investor Business Cycle: the common investor sells stocks at “panic”, completely sells out at “gloom”, buys in slowly again at “hope” and becomes fully invested again at “euphoria”. The successful investor never sells stocks at “panic” or “gloom”, but invests more at “gloom”, and rides the wave.

Lesson Learned 4: Invest during gloom, never sell, and ride the wave.
