Stockmarket psychology

Making money on the stockmarket should be easy. Simply buy stocks, shares or managed funds when prices are low and sell them when prices are higher. This is basic mathematics! However, several studies have shown that the typical private investor buys when stocks are high and sells them when they are low. The principles of human factors can help ordinary retail investors to make money (or not lose money) on the global stockmarkets. Many people lose money when trading or investing on the stockmarket simply because we are human. We act on our emotions or instincts, and we are subject to cognitive biases (errors of thinking). These human factors can lead us to make poor decisions and lose money.

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