how to define excess panic?
can we be little practical and talk in plain language.. so that deep meaning can be understood.
For example, i define my intra day trade like below.
Bought NF 1 lot above 8000 with initial stop loss 7800 and target 8500.
Reason : some setup
Quantity is adjusted in such way that my max loss is 1% of capital.
Similarly if SMART Trader sir can tell his plan, i am sure it benefits every one.
friend,
Sentiments cannot be defined. These are situations one can read from experience and memory.
cannot be objectively defined. But you can notice extreme fear among participants, media, channels and sharp sell off's.
look at my yesterdays post where I said mid caps crumbled and broker may cut my positions. I felt extreme panic and fear ...(kind of a sign)
not necessarily we see reversals, but markets may at least take a break before resuming fall...
again these opinions may be wrong and market may not care history. Bcz now the underlying reason for this fall is different...a epidemic which we dint see.....