Mass psychology rampage and obsessive thoughts, and escapism and a sense of reassurance!
Investor psychology and expected value. The more inconvenient a forecast or premonition is, the more likely it becomes reality. Through public opinion manipulation, they inflame individual investors' anxiety and expectations, guiding them into a favorable psychological state for the manipulators. This induced psychological state is called crowd psychology, and the manipulators lure individual investors to adopt the crowd psychology they desire, thereby trapping them.
The more violently stock prices are manipulated and swing, the more anxious people become and seek reality avoidance to the extreme. When that happens, people stop thinking and, in a daze, encounter forced stop-loss. When prices move with unnatural momentum, it becomes evidence that mature investors want to realize profits or revise price levels.
It was possible to sell because there were investors who would buy. It was possible to buy because there were investors who would sell. In an upward trend, when mature investors sell to younger investors, the peak is reached. Whether a short-term peak or a long-term peak, once mature investors take profits, the rising market ends. Then, forming a downtrend, they entice with stair-step buying. By guiding you into holding unrealized losses, they induce a sharp drop to force losses, and mature investors buy back, so the upward trend continues.
Mature investors are invincible. Money is justice. That is reality. Losing investors have unclear criteria for trading and, as unrealized losses grow, escape reality. Winning investors have clear criteria and trade according to their own methods. Do not find it unnatural; from the perspectives of the bulls and bears, review market conditions and expose mature investors' intentions. Researchers who are losing money tend to be overwhelmed by negative feelings and overreact to negative analyses through self-suggestion.
And because decision-making ability declines, they cannot endure immense stress, cut losses, or make reckless decisions leading to self-destruction. The obsession that “if this continues, I will incur huge losses” becomes the driving force of crowd psychology. Losing investors seek safety in negative feelings, so they are swayed by information prepared by mature investors and destroy themselves. Investors who cannot earn money can only think negatively.
When you actually incur unrealized losses, you analyze desperately to find possible salvation and stubbornly devise post-hoc theories to reassure yourself—this is a hallmark of losing investors. Successful investors think positively and, from past successes, see through mature intentions and can analyze charts, which is how they profit. Investors who plan their trades in advance, assuming market conditions, are less likely to be ruled by compulsions when prices move unexpectedly and are less influenced by crowd psychology (o^-')b
I think the manipulators intentionally create crowd psychology-driven rampages to control investors’ minds. Losing investors share a common trait: they rely on crowd psychology for comfort and get trapped. The same applies to both rising and falling markets.
You can tell the financial markets are controlled by mature investors. ( ..)φ Note to self
Question the hope and despair prepared by the manipulators. If you incur unrealized losses but it’s within expectations, you don’t cut losses. If price movements go beyond expectations, you cut losses honestly. The better investors overcome the negative chain caused by crowd psychology and aim for profits. When you lose, you tend to lose repeatedly. Likely because the image of unrealized losses influences you, making you panicky, swayed, or lose composure.
After panicking and cutting losses, prices reverse incredibly. At that moment, few investors can entrust themselves to chart judgments. A crisis is a chance. This is when you realize prices are being manipulated; that is precisely why you should consider mature investors’ motives, read the balance of supply and demand, build a formula for victory, and break the negative chain—orz
If you are a profitable investor, you likely have a formula for victory that can see through mature investors’ motives. To break the negative chain of crowd psychology, you should anticipate cut-losses and take profits from the start, believe in your victory formula, and enter prayer mode, so profits cascade and you achieve explosive gains.
The only way to accept the great pressure is to become honest and entrust your own judgment to fate. If losses are small and do not affect your life, you can trade calmly.
The way to overcome the fear of expanding unrealized losses is to become a brave person who can entrust decisions to oneself. Investors who cannot become brave have no choice but to manage risk with abundant capital and operate with low risk. Those who lack abundant funds must wait for opportunities, and when they judge a chance through fundamental or technical analysis, they should prepare themselves, buy, and pray with resolve (^o^)/
In the mode of prayer-imagination, there is no other option but to entrust your fate to your own judgment.
A dreamy, flower-field, fairy-tale brain girl’s fantasies turn into reality (o^-')b
Large unrealized losses, and it is almost impossible to cut losses. Or rather, they do not want to cut losses. They endure or persevere, hoping it will rebound. They believe it will spike soon because of some material release. They hold on and rationalize under false promises. Individual investors who believe rumors lacking evidence (o^-)b
The behavior of investors who were trapped at high prices is always the same—one pattern.
This is a lure ^^) _旦~~ That information ∩(´∀`)∩
Without realizing it is bait, they stubbornly insist their fantasies are correct, continuing to buy, and sometimes making huge profits, so fundamental analysis remains difficult. For example, Nintendo's DS caused a huge stock surge; initially, no one expected it to be a big hit.
When I first saw the Nintendo DS, I thought two screens were useless... wasn’t Nintendo's development thought to lack talent? Yet those who continued buying while dreaming of a hit were the ones rewarded. For businesses nobody expects to succeed, you should analyze them carefully.
Considering information manipulation, manipulators' aims, negative reporting to invite suspicion and topple the chaotic psyche, providing false hope to lure investor psychology, driving desperate investors to frenzy, or positive reporting to inflate hope and dreams, leading to a psychology filled with delusions, and convincing investors to think prices will rise forever—this stimulation of speculative zeal is the manipulators’ strategy or tactic.
Total optimism is a mood created by the manipulators through information operations. Why create total optimism? Because they need individual investors willing to place sell orders to realize profits. If you don’t buy now, you’ll miss the profits ^^) _旦~~
Finally able to buy. With this, I feel incredibly relieved and happy. Acting with that feeling naturally marks the top. It is clear that individual investors who miss the chance and become panicked are just ducks in the market. Even after a major drop, if total optimism remains, there is an intention to induce more short-selling by convincing individual investors of a positive fantasy. If you don’t cut losses now, you’ll lose big. Those who panic and cry as they cut losses realize they are fuel for the market. Recognize manipulators’ information operations as a trap to lure the psychology of individual investors into a crowd favorable to the manipulators. \(^o^)/
Timely disclosures from the Tokyo Stock Exchange, news, remarks by important figures, investment advisers, and securities analysts are all bait articles to attract individual investors, you know (^。^)y-.。o○
Based on all of the above, I think you can read the sentiments of market participants through market analysis.