It is evident that the highly valued stocks always corrects itself. It doesn't matter whether it is in a booming industry or a company with solid fundamentals, once it reaches high valuation, it will someday somehow corrects itself. By somehow I meant that the usual occurance in stock market. The news, people's psychology, candlestick formation, poor financial results, corporate mismanagement, lawsuits and price action. It is not necessary that any of this should contribute to the fall. But one thing for sure is that, once overvalued, it always corrects.
Genuine conviction is invariably born from firsthand experience. This is because, innately, our belief systems are wired to accept anything that can be perceived through our sensory experiences, a trait that evolved during our ancestral hunting epochs. Once we acquire such direct experiences, no further evidence is required to cement our belief. These experiences thus become the compass by which we navigate our existence. Hence, the optimum method of learning is through experimentation and introspection, for knowledge acquired in this manner becomes deeply embedded within our psyche, imparting indispensable lessons for personal development and growth. Predominantly, our learning derives from the direct experiences of others who possess a profound understanding and apply this wisdom to enhance their lives. Regrettably, we often fail to leverage this wealth of knowledge to our own advantage.
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