Heard of the term 'herd mentality' in trading or investing, right?
I will want to write more about it as it is affecting most of us ... when market rebounds higher, we tend to be overly-optimistic and ignore the logical thinking. We tend to follow the crowd and convinced that it is the direction we should be following. Nothing is wrong about that ... it is our instinct. It is in-borne in us ... we have our genes to blame? Hmm ... in trading and investing, we do need COMMON SENSE, not our overly- charged emotions(up or down). That is why we have guidelines ... such as PE/PB etc ... or RSI/MACD, for example.
TEH