Which is why so many people buy stocks that are down. I sold the stock back up. Many people feel like playing the stock market today, unfortunately siding. Actually, it's about it or what exactly. Theory of investment Should be available to Because of investment, investors should invest what the good and would gain not loss but really Strategic and re-use is not effective because each investor to have a "bias" compromise position if that stock is down. to Or agrees to buy the very expensive if you think it will go up further. What every investor uses. Really it is "supposedly" the "brain" of the processes the information and factors surrounding but not knowing. The brain is deep within the decision-making process based on "emotion" rather than "why".
Mr. Vernon Smith, 2002 Nobel laureate economist who studies behavioral finance, said. "Every investor has a black box that is the decision-making process in the brain without. Who knew that the black box is a way to make decisions. But the decision does not cause adverse effects. Change the state of mind is "when individuals do not take the scene. Has resulted in the idea, then the investment is a reflection of the thinking of each investor. There is no reason Stock market is unpredictable yet. Someone once asked Why would a good investment to a 1-10 ranking of a university Wharton on investment has reputation in the high IQ Why then did not succeed in the stock market as well.
Return to Thailand to see the stock market. The more intelligent people The losses in the stock market But a wise moderate, but if you have a high EQ and return can be achieved more than what the results will gradually be solved in the following chapters. Try these inset.
Ex1. Do you think the company A performance from the good. I shares at a price of ten baht. Intend to sell in the short term at 12 baht on earnings forecasts issued. But earnings forecasts as good as expected. But shares fell 8 baht you do not mind disposal (Avoid Regret) and think that if the stock price return of only 10 baht par, it will be sold to (Referance Point).
EX2. You buy a stock at B at 10 baht, were trading the stock price run up to 12 baht you sell to 20000 baht a share price run up to 15 baht you feel too much (No, for sale as a pig). the share price has jumped to 13 baht to buy the stock back, but this time bought 20000 shares not for profit lot (greedy because I have gained) bought shares ran back 10 baht as it appears that the platform. then you lose 40000 THB
Although these things he went through or have been warned time and time again. That do not follow the "mass" and blindly. Indeed, the word "mass" is not anywhere else. It is the "we" and "you" that the behavior of the "mass" is the behavior of the general public if the wrong decision or emotional reaction. Severe because understanding is wrong, and you are stuck in that state as well.
So just think that we need to be different from others because it does not benefit them, most people know that they should do, for example, smoking all know better. Quitting smoking is the right thing, but if you do not "practice" is not stepped. Cognitive and emotional barriers that result in our being successful in the stock market.
In "Crisis is opportunity," but to a few people. Overlooked by a cloud of worry that the next day was bright. When the whole atmosphere It is not so Everything seems to be worse, worse, people see what it feels hot atmosphere if we see just the heat. We are reminded of the cold air is not cheap at all. This was proved by Science. We feel, as of now, is an important component in the decision making of any such time Im so hungry to Shopping over time.
Emotions affect decision making
You might think that a good mood or bad mood. Not affect the decision But not even the people who are most affected by the lack of emotional reason. I will not be making any decisions. You have to study this issue by a neurologist named Antonio da Studios has reported that patients with brain injury. Ventromedical Frontal Crotices destroyed, which is the brain that cause emotional. But the brain, memory, intelligence and the ability to cause a normal result. But the trial have shown that. The mood in the decision process without destroying the ability to make a reasonable result for the equation vanish.
Thus, if the situation does not Direction cognitive minds From the news and feel The progression of the poor to the brain dictates how "good" it is difficult to dispute the brain to order right away, "Well, actually, or" I think it's anything to be nice? So buying the stock at the end of a nightmare. Even you yourself have not been difficult because the brain is thought out arguments that "this may be a long time or not."
Tools, techniques, and Emotion
Some say that if we do not take it into an equity investment, but believe only a tool. Technically, the tool is not based on any mood of the market anyway. Will be effective? The first answer is to say that those who think this way. Technically, there is not good enough. Because actually, technically, is the use of statistical methods adapted conditions. In fact, I used to forecast the stock market is going to be next. In fact, in a market that has been adapted to the soulful "fear" and "greed", so the tool is based on the mood of the market anyway.
The second answer your quote request to the owner J. Wells wilder popular technical analysis tools, such as RSI (Relative Strength Index) PAR (Parabolic Sar) MOM (Momentum) Volatility (upheaval of the price) that these technical tools. Established with Wilder is huge, but later he released a new article titled Adam's Theory of rejecting the technical tools he invented earlier, he said that this new theory is crystallized in an understanding of the investment. For decades, he has
Theory Adam located on the conclusion that "there is no tool in the analysis of the work is complete. That can guide decisions Investment is 100% accurate, but each piece of equipment available in the industry. Are defective in itself may not "capture" and empowered them. Because of that, the market Market that never stops No fixed style But what is changed to another at any time.
He posed the question "If those tools precisely why investors use them. It also suffered losses Those tools will analyze the spot. Chang did not fumble with blind eyes see an overview of the market or the stock. It's not perfect Unable to cope with the fluctuations of the stock market is always possible. "
Even so, the tools may not be complete in itself. But if we could have used a combination of the emotional investment planning understood mass psychology. The stock will do even better.
