From time immemorial, market participants have been divided into two categories: bull and bear.
Bull has always been a symbol of successful and productive people, and the bear has been a symbol of unsuccessful and failed people.
But since the beginning of this year, with the growing growth of the index, a new generation of traders has entered the arena, which does not fall into either of the above two categories. These people often buy based on the excitement of the market day and based on the greenest symbol, the heaviest shopping queue and the most positive symbol. Their criteria for sale is: when the symbol turns red, the queue is sold… so it’s time to leave !!
The above people buy and sell without any analysis and only on the basis of simple objective observation.
Perhaps for many old market participants, the question has been since the beginning of this year, how does the index become negative in half a week (almost 1% negative per day) and the other half of the week immediately becomes a positive index (approximately 1% positive per day)? ? The answer to the question is simple: the presence of sheep in the stock market, if you pay attention, on days when the index becomes negative, sales pressure will increase abnormally. In this case, the bulls and bears wait a few days for the market to return to normal and then decide to buy or sell. But in this situation, the sheep, by selling their stocks, practically capture themselves for a negative 1-day index. This process will continue for a few days.
After only a few days, the sheep have sold all their shares, now they have money, but they have no share. This is where they buy the same shares that they sold a few days ago, and start buying again without any analysis. They get excited.
Yes, friends! This is one of the reasons for the emotional index, which is 1% negative one day and 1% positive tomorrow.
Unfortunately, in the market, 90% of people buy without any analysis and based on rumors, news, hearings, etc., and in the most optimistic case, only 10% of people use the least analytical methods (Fundamental and Technical).
Published and authored by FalconProfit.com
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