There are very few writings on technical analysis that have stood the test of time and truly deserve respect but the Dow Theory is unquestionably one of them. Charles Dow was one of the true Pioneers of Technical Analysis; he even created the first stock index; The Dow Jones Industrial Average. In 1899 he published ...…
Group Intelligence is a type of synergistic IQ where the collective IQ of the group (assuming that the participants have little emotional connection) becomes greater that any of the individuals on their own. Group Intelligence as a part of trading psychology is the basis of the ‘Efficient Market Hypothesis’. It assumes that at any given ...…
Herd Mentality results in the dilution of I.Q. by the members of a group. This dilution increases exponentially with the size of the group and the level of emotion common amongst members. Herd Mentality is the reason why a group of people can abandon reason and descend into madness in a way that any individual ...…
An understanding of Trading Psychology is the imperative foundation for all the other skills required for success in the financial arena. The inability of the masses to endure the psychological effects imposed by the market is the main reason why Wall St eats them alive and why there is so much money to be made ...…
After the crash of 2008, many peoples faith in the Buy and Hold approach to financial freedom is on shaky ground. For a long time the Buy and Hold strategy has been pushed strongly by financial planners and the mutual fund industry. To sell ‘Buy and Hold’ as the way to go, compelling statistics are ...…
Contagion is a concept that not many people are familiar with but it’s a very real, powerful and important force in our financial markets. We see contagion in effect every time a reaction in one market spreads into another. As Gordon Brown, ex-Chancellor and Prime Minister of Britain said: . No matter where it starts, ...…
