To avoid the common pitfalls of a market "rush," experienced advisors suggest the following:
: The best time to enter a market is often when others are scared, rather than when everyone is excited by recent gains. angel rush
: True professional angel investing follows a power law distribution , where a tiny percentage of "big winners" accounts for the majority of returns, while most investments fail. During a rush, many investors fail to account for this high failure rate. Strategic Recommendations for Investors To avoid the common pitfalls of a market
: The rush is often fueled by watching others achieve quick fortunes from IPOs or acquisitions, which can lead to overconfidence and a lack of investment discipline. angel rush