In this stock market for beginners, section provides the basic foundation for the novice player for some grounding. The idea is not to provide you with a list of what you should or should not do but to start off with the most essential factor. This one factor is what determines if one is going to win or lose over the long run; it is said that 90% of players lose over the long run when it comes to investing. So what is this special one factor? One’s emotions and how one lets them run amok.
In this section, we will examine the intriguing and rarely referenced field of Mass Psychology. The goal here is to provide the novice investor with a firm foundation; once you have a solid foundation in place it is easy to scale upwards. Several articles that cover the topic of Mass Psychology eloquently are provided together with several videos.
Mass PsychologyAt the Tactical Investor, we believe Mass Psychology holds the key to successfully navigating the markets. Mass psychology provides you with a tool that enables you to gauge the primary emotion that’s driving the crowd. Once you identify the emotion you can identify the trend and once you have determined the trend, the rest is quite easy. When you combine mass psychology with Technical analysis you have a system that is second to none and can help you pinpoint key market turning points. Technical analysis helps one determine when a market is trading in the overbought or oversold ranges.
In short, mass psychology is very clear when it comes to the mass mindset; the crowd is always on the wrong side when it comes to spotting an opportunity.