What Exactly is a Market Crash?

What Exactly is a Market Crash?
Summary of an Article from www.stock-market-crash.net:
http://www.stock-market-crash.net/what.htm

The above site which has wonderfully narrated the periodical moves and psyche of investors towards stock market's bull and bear phases. The site has explained the way in which the so-called 'Smart Money' takes entry into the market by way of gradual accumulation at lower levels where valuations are cheap and below its intrinsic value, but retail investors fret to take entry at this point in time due to over-all saggy investment mood.

The site elaborates as to how smartest accumulation takes place at lowest levels & gradually other lesser smart funds take entry at the 2nd lowest step of market with inside news of recovery spreading over. It further elaborates as to how retail investors remain a mere spectator during the above phases of smart money entry into the market and how the gullible lot enter at valuations which could be termed as 'Fair' but not longer cheap. It says that once the retail investors start earning money fuelled by over-all optimistic environment, the sophisticated lot gradually takes the Exit route and moves towards safety net as valuations move forward from 'Fair' levels to 'Expensive' levels.

The site further cautions our attention as to how a number of companies become public and come out with IPO to sell their story amongst gullible retail investors. The optimism reaches such high horizons that the lessons from the just-witnessed extreme bearish conditions are forgotten and 'Money-making' becomes the mantra from tips and recommendations from Brokerage houses and other smaller agencies.

Note: Readers can Read this Article in Detail by Clicking on the Link attached at the start of this post. This is Not A Paid Review Of Any Kind For The Above Site. I've posted this link for the benefit of the new investors who would find this article helpful in determining the different phases of markets without being carried over by the prevailing phase of excess euphoria which has seen Nifty jump from 2500 to 5000 with in a short time span of just 1 year, which needs some sort of consoldiation/correction before the upward journey flourishes in a big way. I was able to co-relate with some of the inputs in the article with the recently witnessed bust and boom rounds of last 1 year in Indian stock markets.

Readers' Comments Are Welcome From Those Who Are Willing & Eager To Share Their Experience & Lessons From Boom-N-Bust Cycle Witnessed Recently.

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