Mass Psychology; the basics 

Sentiment analysis and Mass Psychology for beginners

The following articles will provide those willing to learn, everything they ever wanted to know about mass psychology and investing.  The study of market sentiment is incredibly useful in determining market tops and bottoms in advance of the event. All it takes is some patience and the desire and drive to understand the basic forces that are useful to our survival are extremely detrimental when it comes to investing in the markets.  These instinctual forces might be very useful in terms of delivering us to safety when it comes to any threat to our physical well-being. However, in terms of financial well-being these forces are completely useless and downright deadly. The forces we speak of are Fear, Euphoria or indecisiveness, etc.  The idea here is to fear what the masses do not fear and embrace what they fear.  If you want to become a better investor, a better market timer, then you owe it yourself to understand this very simple yet incredibly powerful force that controls and directs every human action.

 These instinctual forces might be very useful in terms of delivering us to safety when it comes to any threat to our physical well-being. However, in terms of financial well-being these forces are completely useless and downright deadly. The forces we speak of are Fear, Euphoria or indecisiveness, etc.  The idea here is to fear what the masses do not fear and embrace what they fear.  If you want to become a better investor, a better market timer, then you owe it yourself to understand this very simple yet incredibly powerful force that controls and directs every human action.

Ths is an extremely misunderstood field and is very often confused with the concept of contrarian investing. Contrarian investors in general, have very little knowledge of the inner working of this field. They are for the most part fashion-contrarians and not real-contrarians. Fashion contrarians want to make a statement or  create the illusion that they are taking a position that is opposite to that of the masses.  In reality, these fashion-contrarians ignore the simplest rules when it comes to mass psychology and investing. These fashion-contrarians are in fact, nothing more than idiots, who assume they are Geniuses.

In reality, these fashion-contrarians ignore the simplest rules when it comes to mass psychology and investing. These fashion-contrarians are in fact, nothing more than idiots, who assume they are geniuses because in a sea of idiots they seem to be the least idiotic. You ask what is the most basic rule these geniuses ignore? They fail to understand that Mass Psychology is the study of extreme behavior; One does not oppose the masses for the sake of opposing them.  One takes an opposing position only when the sentiment has reached a boiling point.

Mass psychology and investing

Mass Psychology on Display

We hope this series  helps shed some light on this simple but grossly misunderstood field. We will continually be adding to this series so feel free to bookmark this page or subscribe to our newsletter. 

 

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