This market has four phases, namely pessimism, scepticism, optimism, and euphoria. In the pessimism phase, the markets are gloomy and are at the end of a big downtrend. The volatility in the market is lower, and there is some short-term positive sentiment in the scepticism phase. In the optimism phase, the investor sentiment turns positive, and people are willing to invest in the market. In the last euphoric phase, making money becomes easy, and there is a lot of liquidity in the market, and all stocks perform well.