Crowd Behavior & The Founding Principles of Mass psychology
Crowd Behavior & The Founding Principles of Mass psychology

Crowd Behavior & The Founding Principles of Mass psychology

Crowd Behavior

Crowd Behavior: Never Follow The Crowd

One of the best ways to get a grasp for the basic principles of mass psychology would be for us to list a few things we have observed over the years.  We hope this will help provide the student who wants to further his knowledge and understand of mass psychology with a firmer footing. In short, mass psychology is knowing when to buy and when to sell, by utilising mass sentiment to your advantage. You do not just buy or sell because the masses are doing so. One has to wait for the emotion to hit the boiling point, in some cases, it needs to hit the extreme of extreme ranges. In other words, people should be frothing with Greed or fear before you step or out of the markets.

When It Comes To Crowd Behavior: Keep These Facts In Mind

  1. Disaster come and go and this cycle will never end until Fiat is fully eliminated
  2. Stress is the most destructive force in the universe, therefore try to not worry about things you have no control over. Focus on the now, for the now shapes the future.
  3. One of the best ways to boost your stress is to worry about an event you have no control over and then lose the opportunity that’s staring you in the face.  For example, worrying about a stock market crash and in the process missing the stock market bull. When the bull ends you curse yourself not embracing it and so the vile process continues. The disease and the cure lie within your own hands. Do something about it or someone else will and the outcome will not be the one you wish, want, or hoped for?
  4. Fear mongers will always be there but think of them as comedians instead of taking them seriously and you will do just fine. Their advice is on par with rubbish so use them to get a good laugh from as opposed to listening to their nonsense.
  5. Don’t be part of the crowd that chant’s “I wish I bought when the markets were falling apart, but when they get that opportunity but these very same individuals will be the first ones to flee for the hills.
  6. Don’t worry about dying; its ironic people spend more time worrying about dying then they spend on living. Focus on how to make each moment of this finite life more memorable. Dead men tell no tales because the living are much better at it.

Other articles of interest:

Avoid These Common Stock Investment mistakes

A clear Illustration of the Mass Mindset In Action

Technical Analysis

Why Mechanical and Technical Analysis Systems Fail

The Limitations of Trend Lines

Contrarian Investment Guidelines

Inductive Versus Deductive reasoning

Mass Psychology Introduction

Mass Psychology Part I, Sept 26, 2007

Mass Psychology II, Oct 2, 2007

Mass Psychology III Oct, 9, 2007

Comic Strip Illustrating Mass Mindset (July 2015)

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