The cycle of investors' psychological emotions during the market cycle shows how traders move from optimism to panic, then to frustration, before the cycle repeats itself again.

As the decline intensifies, a state of panic emerges, and random selling begins to avoid greater losses. Then comes the stage of anger and blaming external circumstances or parties.

After prices stabilize at relatively low levels, some investors enter a stage of depression and regret.

Finally, as a gradual recovery begins, the stage of disbelief returns again, marking the start of a new psychological cycle.