{"id":12,"date":"2018-10-10T23:09:51","date_gmt":"2018-10-10T23:09:51","guid":{"rendered":"http:\/\/blogs.harvard.edu\/kuansanchez\/?p=12"},"modified":"2018-10-10T23:10:09","modified_gmt":"2018-10-10T23:10:09","slug":"the-psychology-of-the-stock-market","status":"publish","type":"post","link":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/2018\/10\/10\/the-psychology-of-the-stock-market\/","title":{"rendered":"The Psychology of the Stock Market"},"content":{"rendered":"<p>There is a certain psychology that influences the global markets which tends to be commanded by fear and greed.\u00a0 According to Investopedia, &#8220;market psychology refers to the prevailing sentiment of financial market participants at any one point in time&#8221; (Staff, 2018).\u00a0 The landscape of global market trading has changed since the early 2000&#8217;s.\u00a0 A lot of psychological concepts of anchoring, loss aversion, recency bias, and other cognitive biases have caused abnormal fluctuations against technical patterns of market pricing.<\/p>\n<p>The question is whether you believe that companies are valued on their prospective targets or are stocks merely targets of opportunity for large price fluctuations (liquidity) and easy profits?<\/p>\n<p>Read more: <a href=\"https:\/\/www.investopedia.com\/terms\/m\/marketpsychology.asp#ixzz5TZXuCKLC\">Market Psychology<\/a> <a href=\"https:\/\/www.investopedia.com\/terms\/m\/marketpsychology.asp#ixzz5TZXuCKLC\">https:\/\/www.investopedia.com\/terms\/m\/marketpsychology.asp#ixzz5TZXuCKLC<\/a><\/p>\n<p>Staff, I. (2018). Market psychology.\u00a0 https:\/\/www.investopedia.com\/terms\/m\/marketpsychology.asp.\u00a0 Accessed October 10, 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is a certain psychology that influences the global markets which tends to be commanded by fear and greed.\u00a0 According to Investopedia, &#8220;market psychology refers to the prevailing sentiment of financial market participants at any one point in time&#8221; (Staff, 2018).\u00a0 The landscape of global market trading has changed since the early 2000&#8217;s.\u00a0 A lot [&hellip;]<\/p>\n","protected":false},"author":9671,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/posts\/12","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/users\/9671"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/comments?post=12"}],"version-history":[{"count":1,"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/posts\/12\/revisions"}],"predecessor-version":[{"id":13,"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/posts\/12\/revisions\/13"}],"wp:attachment":[{"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/media?parent=12"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/categories?post=12"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/kuansanchez\/wp-json\/wp\/v2\/tags?post=12"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}