This page contains articles dating back to 2003. Our focus is on combining sentiment analysis via mass psychology and technical analysis to keep us on the right side of the markets. It is the informed investor that wins, but the wrong information is just as good as no information, and in some cases, it can be even worse. The study of mass psychology is to understand what drives the masses.
What makes the masses buy when they should sell and sell when they should buy. Why do the masses always react the same way? Every time there is a market sell-off or some new story that causes panic; the masses flee for the exits. Instead of seeing a strong correction in the markets as great buying opportunity they view it in the same light as a monumental tragedy. In the markets one cannot trust emotion to the talking; if one lets emotions rule, then bankruptcy or loss is the only reward you will be bestowed with. Fight the urge to flee and instead plant your feet firmly in the ground whenever there is blood in the street. Mass psychology is key to understand the markets and investing. If you plan to be a successful long-term investor than mass psychology followed by technical analysis will go a long way in helping you overcome your losing streak. Our articles always focus heavily on both.
