Psychology of The Stock Market Book PDF Free Download
The Speculative Cycle
MOST experienced professional traders in the stock market will readily admit that the minor fluctuations, amounting to perhaps five or ten dollars a share in the active speculative issues, are chiefly psychological.
They result from varying attitudes of the public mind, or, more strictly, from the mental attitudes of those persons who are interested in the market at the time.
Such fluctuations may be, and often are, based on “fundamental” conditions that are, on real changes in the dividend prospects of the stocks affected or on variations in the earning power of the corporations represented -and again they may not.
The broad movements of the market, covering periods of months or even years, are always the result of general financial conditions;
but the smaller intermediate fluctuations represent changes in the state of the public mind, which may or may not coincide with alterations in basic factors.
To bring out clearly the degree to which psychology enters into the stock market problem from day to day, it is only necessary to reproduce a conversation between professional traders such as may be heard almost any day in New street or in the neighboring cafés.
” Well, what do you know?” says one trader to the other. “Just covered my Steel,” is the reply. “Too much company. seems to be short.” Everybody
“Everybody I’ve seen thinks just as you do. Each one has covered because he thinks everybody else is short -still, the market doesn’t really much.
I don’t believe there’s much short interest left, and if that’s the case we shall get another break.”
| Author | G. C. Selden |
| Language | English |
| No. of Pages | 140 |
| PDF Size | 4.9 MB |
| Category | Self Improvement |
Psychology of The Stock Market Book PDF Free Download