It is true that investors are emotional beings. Yes, you heard me right. Sentimental. They share this trait with poets and other creative people. These are the persons to whom we confidently commit our stock holdings to.
They make judgments in a market based on mutually agreed views toward pricing, yes, based on attitudes. Investor mob psychology concerns the conforming behaviours and thinking processes of ordinarily rational members of the larger social structure of persons entrusted with asset growth. Pervading sentiments influence how price history, seasonal changes, economic news, and national and international events are evaluated and comprehended. The indicators used to monitor and profit from short-term price swings emanate from market mood. Yes, mood.
I am uncertain if I derive comfort from this realisation, but it is a fact. I have to deal with it.
Comments