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Welcome to the Emotional Balance section

You just experienced your first market crash. Was it disastrous? Yes.

Read this before seeing the rollercoaster

Stage Emotional State Financial Description
🙂 Optimism Growing Confidence Prices rise steadily but savings and fundamental still support growth
🤩 Euphoria Greed and Overconfidence Valuations become inflated and stock as prices detach from fundamentals
😟 Anxiety Uncertainty and Doubt Volatility increases and early warnings signs start to appear
😨 Fear Loss aversion Prices fall further and emotional decision-making increases
😱 Panic & Capitulation Distress, exhaustion and despair Heavy selling pushes prices far below intrinsic value; many investors exit at the worst time
🌤️ Hope Cautious optimism Selling pressure reduces and markets begin to stabilize
📈 Recovery Renewed confidence Sustained prices increase and long-term investors return

Emotional Rollercoaster During Market Crash

Scenario will appear here

Investment Decision Outcomes

See how different decisions affect risk and potential returns during a market crisis

Select a decision to see its financial impact.

Explanation for the chart

This chart explores how investors usually feel during a market crash. Market crashes follow patterns, not just in prices but also emotions. The classic emotional cycle during a crash looks like the table above. Happy first, desparation and panic later and as the market recovers, investors seem healed and hopeful too.


But one question that arises is what makes investors happy about a crash if they know they will be sad later?

Even though crashes look scary, experienced investors remain calm. They know what comes next and what to do when other inexperienced investors start panic selling

1. Stocks become “on sale”

When prices fall, high-quality companies' stocks become cheap compared to normal times.
Smart investors love buying great stocks at a lower price or discount



2. Opportunity to build long-term assets

History shows that markets always recover
So buying during crashes leads to leads to profit during recovery



3. Rebalancing works Better

During crashes investors can:


This improves portfolio strength. Investors predict which industries bounce-back and buy stocks from companies accordingly at a lower price. When the market bounces back, they sell these stocks at the normal rate which will be higher than ever since the market has recovered.



4. Emotional Advantage

Most investors panic → they sell low.
Experienced investors stay calm → they buy low.

So a crash separates:
Fear-driven beginners, and
Strategic investors who stay patient.



5. They Know the Recovery Gives Massive Gains

If you buy at the “bottom,”
the recovery phase multiplies your returns later.


That’s why seasoned investors don’t fear crashes —
they see opportunity, not disaster.

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