This stock market emotions chart illustrates the 14 stages of the investing journey. Do any of them sound familiar to you? 14 stages of investor emotions Optimism– A positive outlook encourages us about the future, leading us to buy stocks. Excitement– Having seen some of our initial ideas ...
The market is not a machine—it is a battlefield offear, greed, andblind hysteria.It is ruled not by logic, but by the raw impulses of the masses.Those who understand this truth wield an unfair advantage.They see what others cannot: the tipping points where euphoria turns to collapse, w...
Psychology Of Investing and the Coronavirus Thefirst month triggers panic, and markets decline from mild to wild. The masses repeat the same cycle, as seen in the chart of the MSCI World Index. Mass psychology provides insight into market behaviour, allowing investors to recognize opportunities to...
(and I think more common), that financial success is not a hard science. It’s a soft skill, where how you behave is more important than what you know. I call this soft skill the psychology of money.Physics isn’t controversial. It’s guided by laws. Finance is different. It’s ...
Netherlands, 20 Feb 2025- The cryptocurrency market experiences huge amounts of market volatility that comes from emotional forces outside standard financial practices. Market fluctuations result mainly from how investors feel and act together as well as
There is a feeling that occurs, a knowing. You look at the chart and you know what it will do. As if you have some sort of pre-cognition. What is this? As if the stars have aligned and you somehow intuitively know. When your brain kicks in you may second guess yourself, change yo...
advance. The floating supply, now greatly increased, is tossed about form on speculator to another at lower and lower prices. From time to time stocks become temporarily lodged in stubborn hands, so long as the load of stocks is still on the market the general course of prices must be ...
Each time the market feigns a breakout amateur traders jump aboard and then get wiped out. Example: Price will make steady progress upwards, moving to the top of a range. Amateurs will be thinking “Price is going up.” Then price dives down all of a sudden. The amateurs then think “...
what’s the point of being rich? Buy it! Other more granular motivational emotions for mass market products still grounded in the five core emotions above are: Competition:“Our neighbors have that grill, so we need to get it or something better.” A sense of belonging:“I’ll join my ...
Technical analysis looks at price charts to find patterns that indicate trends and reversals. Technicians believe that these patterns are the result of market psychology. A price chart, then, can be thought of as a graphical representation of emotions such as fear, greed, optimism and pessimism, ...