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Re: errett post# 3780

Thursday, 08/09/2012 12:30:03 AM

Thursday, August 09, 2012 12:30:03 AM

Post# of 6072
This question you have raised would make a wonderful Ph.D disertation. Unfortunately, this board is not the place for me to respond in great detail. Briefly, although the market is indeed a human institution, it nonetheless is an unemotional entity. It cares nothing about the individuals who enters its domain, be they tall, fat, or skinny, male or female, or what ethnicity or academic background they are from. Indeed, it welcomes all players, and will reward or punish them, based solely upon their own individual performances. Unfortunately, investors being the emotional people that we are, often times have difficulty in keeping our emotions under control after we place our chips down. Such negative emotions as greed, fear, and hope, often influence our decision making ability in the market place. For this reason, beside fundamental and technical stock research, the psychological school of thought must also be considered. Psychologists tell us that our pattern of making decisions in the stock market is directly correlated to our daily behavior. For example, individuals who display a high risk tolerance level in their daily lives, most often are attracted to the more speculative stocks, whereas more conservative individuals, tend to seek out more stable safer investments vehicles.

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