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How do emtional depression effects on stock market?

Posted: Thu Nov 06, 2014 9:12 pm
by oem7110
Let assume that majority of investors are depressed, how do they effect on stock market?

Does anyone have any suggestions?
Thanks in advance for any suggestions

Re: How do emtional depression effects on stock market?

Posted: Wed Nov 12, 2014 7:25 am
by rhc
I imagine they might buy 'PPH'
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The business of Depression is booming . . . Clearly!

Re: How do emtional depression effects on stock market?

Posted: Sat May 30, 2015 5:16 am
by EVASim
There are different theories about the emotional depression effects on stock market.
I have read different theories about market Psychology.
And discover a lot of new things. Now days it is important to have imagination
and knowledge about this sphere.
Stock traders make decisions based on psychological factors, including emotions, and may place undue weight on specific information at the expense of other relevant data. Different emotional states can have unpredictable effects on decision-making at different times. Mood can have an impact on cognitive performance and expectations, while factors such as a series of gains or losses can have an effect on traders.
The analysis suggests investors often make decisions based on emotions such as regret, disappointment, pride and contentment. All behaviors were consistent with what the researchers term “counterfactual thinking”—looking back at what could have been—and suggest that investors are motivated by a desire to avoid regret and instead feel pride.

So it seems the swings in the stock market may be more a result of emotional reactions, not rational, logical thinking on the part of traders and investors. So much for the science of stock trading and investment.

Re: How do emtional depression effects on stock market?

Posted: Tue Jun 16, 2015 8:55 am
by sinkpretend
Very well EVAsim I appreciate your point, and also want to add that due to some reasons we all face emotional dullness and that is the time when you should stop making decisions, because dullness causes destruction. So emotional dullness may also be a factor of declination in stock market.