Money Playbook: What Most People Do in Panic and What Not To Do Applying Market Sentiment

How to Use Knowledge to Get Ahead in the Market Tying Tone of Individuals, Tone in General to the Market and what to do based on the key principals of the universe.

Tone Scale with the Market, What to Do Based on Universal Laws and What Most Do

Start, Change and Stop in the Fear Zone

This document explains how to make the most money by applying the 26-tone scale to stock market psychology, combined with the universal cycle of action. It builds on the panic market survival playbook and translates tone analysis into trading strategy.

Guiding Principle

The most money is made not by chasing exuberance, but by being causative during panic. Most traders buy high (exuberance) and sell low (fear). Cycle mastery flips this: buy into dispersal (when fear exhausts) and sell into ridge formation (when enthusiasm peaks).

Using the SCS Actions to Maximize Profit

Start: Before panic → prepare capital and lists of assets you trust (fundamentals intact). Cash is ammunition.

Change: During panic → scale in tranches, hedge if needed. Volatility is ally.

Stop: Trim when enthusiasm → exuberance. Exit on plan, not emotion.

Survive: Preserve gains. Stay present for the next cycle.

Practical Money-Making Strategy

1. Measure Tone: Use Fear & Greed Index, VIX, put/call ratios, sentiment feeds.

2. Wait for Ridges: Capitulation ridge = likely bottom. Exuberance ridge = likely top.

3. Trade Against Tone: Fear ridge → buy strongest assets. Exuberance ridge → sell/short weak names.

4. Scale: Add on dispersals, trim on ridges.

5. Repeat: Each cycle is an opportunity if executed with discipline.

The Formula

The most money is made by:

• Buying at Fear dispersal → Selling at Exuberance ridge.

• Avoiding paralysis at Stop, and avoiding mania at Start.

• Surviving each cycle with capital intact.