What is market psychology?

market psychology is a term used in the world of high funding to describe the investment behavior of the LAG. The general concept of market psychology is related to effectiveness. Theoretically, if people always behave logically, the market and the economy would always make a rational sense in relation to each other. In fact, people do not always behave rationally and often have more in common with emotions than any logical motivation.

Sometimes market psychology has a good justification. For example, if traders see the economy steaming, they often do not enjoy trade and investment markets become acidic. Other times, things that are not entirely related to financing can send the market to a sudden dive or climb. For example, an international incident that causes people to worry that perhaps the war may not have any immediate financial impact, but it can potentially cause investors to trade anyway.

Investors have developed many methods to try to measure market psychology, but it can beOne of the more difficult aspects of the market. Even the best market experts often make mistakes when trying to decide on the basis of the expected market psychology in the situation. Sometimes the mood of the market is obvious and easy to measure, but when the situation is complicated, there are often too many chaotic elements that affect the mass mood of traders. In these situations, the market can do things that make no sense, and experts may not be able to say with certainty why it happened, even after reality.

Sometimes market psychology can lead to chain reactions. One group of people can get angry or enthusiastic about some small thing, and this emotional intensity can spread. Basically, when the market begins to decline, it is common for the market to be influenced, although the initial occurrence is related to the single Market Sector or one small piece of messages.

news media had a significant impact on market psychology. In the first days of the market, the news was generally harder to come and took longer than something happened. Arrival 24hodinoThe news of the intelligence channels has made the market psychology more dynamic. Messages can spread faster and can spread all the time. This means that market psychology can be more irregular, with less noticeable provocation for many events and more overall complexity.