Stock Market
"The individual can be wise alone, but place the individual in a crowd, and he is like dumb driven cattle."
Benjamin Franklin 1767
No matter how you look at it, people have been acting the same for centuries. Ever since trading markets have existed, the "crowd mentality" has been the cause of fortunes won or lost.
Many fiascos later the trading psychology that exists in the modern-day stock markets still resemble olden times with many investor's choosing badly and loosing more money than gaining profits in the Stock Market!
One cannot count on the "Crowd" to act rationally to information received from the financials of companies traded in the stock markets. Fear and uncertainty rule the behavior of the average, unwitting investor and results in loss upon loss upon loss.
Dozens of examples of irrational behavior and repeated errors in judgment in the stock market have been documented in several studies. Evidence that "reveals repeated patterns of irrationality, inconsistency, and incompetence in the ways human beings arrive at decisions and choices when faced with uncertainty." And the stock market is a perfect breeding ground for such things!
Investing is an emotional process, but to be a successful trader emotion can't get in the way. If you can trade in the stock market with emotionless tact and accuracy you can too experience the exhilaration of maximizing huge profits from the market. By doing so, you will increase your efficiency in the financial markets as well as avoid the many costly stock market anomalies, market bubbles, and crashes.
The stock market is an unlevel playing field set to take the average trader's money as quickly as possible. Hedge yourself to the pitfalls that most fall into and gain the profits that can be realized in the market for the wise traders.
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