Psychological behavior of the market
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Basically Stock market moving on the trader’s psychology, at particular moment somebody filling price goes up and other person filling price goes down, after all somebody buying it means somebody selling it.
At particular stage majority want to sell or buy that’s a turning point. Media is an important factor to create psychology and many traders hypnotize and start to follow media, which you can identify easily from Stock market chart pattern behavior, and you can take a advantage of that for day trade Stock trading or penny Stock investing.
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Stock market every day moving in some fixed patent, we need to identify that patent and follow that patent. The Stock market moves in five cycle that's contains three major cycle in the same as market major trend and the two cycles go in opposite to Stock market major trend.
Many time you see’s that every day market going up and day will come and you started to think it goes more up and you don’t want to loose chance and you jump up and buy some Stock and suddenly market start down, that’s a psychological point because market movement created that psychology in your mind and you stuck. Now you thinking it come back but market going completely opposite to you and loss started to become bigger and psychological mind start to tell you that “you don’t want to loose more then particular amount, at this stage you comes under emotional pressure and you see’s price crossing your loss boundary and suddenly you cut your position and market turn it’s direction – trend, you just looking the screen that’s a again psychological turning point. So never go Stock trading day trade or penny Stock trading without doing proper Stock research.
Lot’s of trader passing from above scenario, question is how to avoid this?
To avoid this psychological game you need to stay away from market when you think market goes more up and you going to miss just avoid this situation and rethink peacefully, this key to stay away from rip-off.
Instead of investing with psychological thinking, go with technical analysis or recent company news or some economical events. It’s a best idea to confirm your thinking with technical analysis. Only it's important to find out the Stock market major trend.
For any type of Stock trading day trading you need to stay away when you feel you going to miss great opportunity, or confirm with technical analysis, there are many opportunities available then why we stick on that? Search for some thing else!!!! Same fundamental applicable to penny Stock investing and day trading also.
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