Repetition is the father of all sins, stupidity is the mother and not knowing when to keep ones mouth shut is the grandfather of them all. Sol Palha

Herd Mentality and mass mindset

The sequences detailed below are a clear illustration of the Mass Mindset In action.  The masses never seem to learn from history, and sadly are doomed to relive these events again and again.  It is reminiscent of the movie “ground hog’s day”, where the main character is doomed to relive in each day again and again for eternity. However, fortunately he manages to find the cure to his problem………. Sadly this option is not available to the masses as they do not even recognize the problem. Over 80% of the solution to any problem is identifying the problem.


1= Stock is going nowhere; its pure junk, let me look at something else.
2= Lucky break, it’s going to definitely crash.
3= What, it’s still going up, earnings are not so good, people are definitely getting carried away, it’s going to pull back and crash.
4= Ahh, see I knew it was going to crash, thank God I did not buy. (Mistake the mass mindset misses the main point here. Yes it pulled back, but look where the pull back ended–miles away from its first break out. A losers mind can only see thepicture for what it is not, by replacing it with a picture from his or her imagination. Since they live in a losing sphere they focus on the negative aspects but not on the positive aspects.
5= What happened here; this stock was supposed to crash, how the hell did it get here? Perhaps I should have bought, I could have made a lot of money; this looks like a sure thing. (So only halfway through stage 5 will the mass mindset decide its safe to venture out. Now this person finally musters the courage to buy.) Wow it actually went up, great, I’m making money.
6= This stock is going to go to the moon; let me tell all my friends about it; it looks like a sure thing.
7= What happened? it pulled back. Ahh, I am not going to fall for this like I fell for it last time (look at number 4). Time to buy more, buy on the dip, that’s it.
8= I knew it, it’s going up and I made more money, wish I had bought more. Next time I will invest more on the pull back. (Notice the loser’s mindset does not bother to take time to notice that the stock did not put in a new high. All that matters is that it went up.)
9= It’s going down again, time to really load up; I don’t want to lose this opportunity. Earnings are great so it must be a good time to buy some more.
10= First dose of bad news and the stock takes a big hit; okay, this is just temporary; it’s going to go back up. (Blind faith huge mistake, one of the main ingredients of a losing mindset). Let me buy more and average down.
11= Maybe I should sell now; things don’t look good, but you know what, let me just hold for a bit longer. Maybe things will change. Yeah, things have to change; look how fast this stock went up and it has pulled back so much. The worst is over; it has to go up.
12= This stock is dead, I have to get out; it’s not going anywhere (this is when the stocks start to bottom. The secret programmed desire to lose syndrome has completed its mission. Trader is in state of extreme distress and shell-shocked). I am never going to look at this stock again; I knew it was garbage, why did I ever buy it in the first place?
13) Slow base formations and the possible start of new up trend and the worst part is that this trader is out.


Take a close look at the above picture, for it truly is ” a clear illustration of the mass mindset in action” in pictorial format.  The masses never learn, they will always be used as cannon fodder as that is the role they secretly wish for. Remember the saying “misery loves company, but stupidity simply adores it” ……… The masses always dump when they should be buying and buy when they should be selling. Nothing in this world comes easy for if it did, it was not worth it in the first place……. A little work and patience is all that is needed to overcome the fear needed to break away from the masses.  In this world, it’s not what you know that can hurt you, it’s what you think you know but don’t that hurts you the most.


It’s not the Bulls and the bears you need to avoid— It’s the bum steers.

Chuck Hillis

It is what we think we know already that often prevents us from learning.
~ Claude Bernard 1813-1878, French Physiologist ~

A clear Illustration of the Mass Mindset

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