Trading at the market top

Hello,

The stock market is back at an all-time high. This often brings excitement for existing investors—and a sense of anxiety or even FOMO (fear of missing out) for those who stayed on the sidelines when prices were lower.

It’s tempting to jump in, especially with headlines filled with optimism and portfolios showing green across the board. But this is also a time for caution and patience.

After a sustained rally, price levels often outpace fundamentals like earnings growth, economic stability, or interest rate trends. In such moments, valuations can become stretched, and investor sentiment overly euphoric conditions that typically precede short-term pullbacks or corrections.

Buying at the top locks in risk, not value.

If you're feeling late to the party, remember that good investors don’t chase prices—they wait for prices to come to them.

The best opportunities often come in moments of fear, not euphoria. And while this market high may go higher still, history shows that eventually, corrections come—and those prepared for them are the ones who win in the end.

Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.