Investment psychology
Investment psychology pdf
Behavioural finance

We all know negativity sells as the crowd loves misery. You hardly ever see a group of individuals happily sharing a nice story, but it is amazing how they will smile when recounting some tragic event, and go to great lengths to give you all the unnecessary details. We also find it incredibly strange that people can talk about the losses they incurred during a stock market crash with such calm but when the stock market is crashing they panic and dump the baby with the bathwater.

Why the change in attitude? Is there a difference? in one instance you are losing the money in real-time and there is a chance to recoup these funds if you don’t give in to panic. In the former instance, you have already sold the position at a massive loss and you have no plans of jumping into the market; well, at least that is what applies to those who follow the masses.