Market psychology cycle exists that shines light on how emotions evolve and the effect they have on our decisions. By understanding the stages of this. … Optimism – A positive outlook encourages us about the future, leading us to buy stocks. Excitement – Having seen some of our initial ideas.
You need to grasp is market psychology. Our technical analyst Simon Griffin argues this is reflected in the charts and Shares’ hard-bitten team of fundamentalists will use valuation as the best gauge of whether sentiment, and thus a stock, is overcooked or not. Most successful traders will agree that trading is as much about psychology as it is about a good strategy. Without the mental.
Buffett contends that the key to overcoming emotions is being able to retain your belief in the real fundamentals of the business, and not get too concerned about the stock market. Investors should realize that there is a certain psychological mindset that they should have if they want to be successful.