1. When the price of the asset goes beyond it's intrinsic value (when the price goes 'parabolic' 90 degree angle instead of at a 45 degree angle on a chart). Use an 'intrinsic value calculator'.
2. People say, "This time is different!" Don't believe you're the exception. Stick to the rules.
3. When Aunts and Uncles (laymen) join the investing party (optimism is at an all time high) when they normally don't invest in the market.
4. The media sensationalises high returns and overnight millionaires.
5. Increased use of leverage (borrowing money and using margin to buy stocks) by speculators.
6. The talk of the town. Everywhere you go everyone is recommending to invest in a certain market.
7. When doubters and skeptics are disregarded.
