Investor Psychology and Emotion

The mood swings of the securities markets resemble the swing of a pendulum. They swing between the following:

  • Between euphoria and depression
  • Between celebrating positive developments and obsessing over negatives
  • Between overpriced and underpriced
  • Between greed and fear
  • Between optimism and pessimism
  • Between risk tolerance and risk aversion
  • Between urgency to buy and panic to sell

Sign Up for NextBigWhat Newsletter

Curated. Summarized. Important News. For free.

You May Also Like

Practices of Impact Players

They tap into unwritten rules – the standards of behaviour that one should follow in a particular job. The impact generates investment. They harness uncertainty and ambiguity and find solutions.…
View Post

Being calm and aware

Being aware and mindful of every action you take is a vital skill. Although it’s simple, most people don’t exercise it. Don’t let your feelings of what others will say…
View Post