As a short term trader, your goal is to stay ahead of the crowd and let their money flow from their pockets into yours. The better you can anticipate the behavior of the masses, the better you'll be able to capitalize on their irrational decisions. The masses are notorious for over reacting to media news. A popular theory in behavioral economics is that buying and selling by the masses is motivate...
Trading Educators Blog
Preconceived images have a powerful influence on our decisions. If we believe that a company has a hot new product, we can't help but think its stock price is bound to go up. Trading the markets can be 99% psychology at times. The image of a company can often mean more to us than actual earnings reports, but the masses can be fickle and it is vital to consider as many factors as possible while out...