You have articulated your contemt well. Here are my reflections on few points :

The psychological progression of investors via these stages reflects the common emotional responses of them to market behavior.

That's correct. Investors often go through similar emotions as the market changes. By understanding these stages, they can better manage their feelings and avoid making bad decisions based on emotions.

The investors are in the positive mood with the hope that their investments will yield good returns.

You are right. When investors feel optimistic, they believe their investments will be successful. This positive attitude can encourage them to invest more, but they also need to be careful of becoming overconfident.

The belief that this time it's different may significantly impact investor's decisions and potential returns to them.

Absolutely true. Thinking that the current situation is unique can lead investors to ignore past lessons. This can cause them to make risky choices, especially in volatile markets, and can result in big losses.

Good luck