I love this subject of market psychology. I'm speaking with some experience because I am a clinical therapist and trader for the last 33 years.
When it comes to psychology, I go back to what I first learned in graduate school. You have to understand your own mind, before you can help someone understand his or hers. In other words, if you don't know what thoughts and emotions causes you to behave a certain way, then you are going to have difficulty understanding others.
I spend a lot of my time assessing myself and why I bought a certain stock. I'm always on the lookout for confirmation bias in myself. You see confirmation bias constantly on the boards with longs who have bought a stock, and in spite of overwhelming evidence of its impending failure or ongoing failure, they discount all information that conflicts with their beliefs that it is going to the moon.
