Generally, people have an idea that the stock market is an amazing platform to earn more money, even though it is a fact they forget about the risk factors of the stock market. Of course, you can earn more profit through the stock market but only when you know about the strategies and the phases of the stock market it is possible. In case, if you are not sure about those cycle analysis stock market there you have to get to know about them before investing money in the stock market so that you can escape from getting stuck inside the losses.
Here are the four general phases of the stock market which is included in the stock market cycle analysis;
Phase-1
The first phase is also said to be an accumulation phase, this phase usually occurs after the market has come to a bottom and the investors begin to buy the products. During this phase to increase the product selling the cost will be considered very less and in fact, the audience can also expect discounts on the price of products.
Phase-2
The second phase is called a stable phase or mark up phase. Comparing to the accumulation phase the price increases and during this phase, the employment also increases. This phase grabs an important place in the dominant cycle charting.
Phase-3
The third phase is otherwise called a distribution phase, in this phase, the seller’s shows dominancy. The main thing about this phase is the price often gets locked in a trading range and that lasts for a few weeks or even a few months.
Phase-4
Phase four is a market down phase, during this phase price starts to fall. Because of this, unemployment gets increases. Through the Non Linear Indicators, you can get a better understanding of this phase.
Final thoughts
These are the basic four phases that occur in the stock market, before investing in the stock market you should get to know about it to avoid investing at the wrong timing.