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Making Profits Through Understanding Market Psychology

Posted on July 29, 2008

I am a big believer that the markets, especially in the short term, aren't moved by company fundamentals or any of the other logical indicators. These indicators certainly play a role, but they don't move share prices in and of themselves. There are certain catalysts that can move a share price (such as an FDA decision for a drug company), but there is another force at play that can move share prices significantly one way or the other without one of these catalysts. To understand this force it is important to understand that the market is very much a human driven entity and thus it can be psyc...

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markets , short term