Wednesday, January 18, 2012

Your personality defined



Crowd interest is the collection of different interest among buyers and sellers, but its largely important for determining the market price of any asset class. This particular interest that convinces a buyer to purchase a stock may be for a reason discernably different from your own, but you both agree on the current price. For example, Darah buys a stock for $4 and sells it for $9. Logan buys the same stock for $9 because he thinks the stock is worth $18. Logan has in mind of a potential 100% return on his money and expects that to play out in 2 months. Three months later, the stock crumbles and he must sell for a loss. The point is we both found it to be a bargain, but bought the stock to sell it at a different price and time. It is is nearly impossible for you and another individual trader/investor to come to the exact reasoning for purchasing a stock. The way you perceive information defines this particular interest only you can develop when seeking out bargains in the stock market. Your decision making in the market is heavily influenced by your personality, not your IQ, or level of education. So what is your personality type? The personalities that exist in the investment world are classified as being either  "buy the finest" or  "bargain hunter." The two types of personalities think very opposite. In other words, you either have the investor personality or you don't. Remember, 75 % of investors will take a loss in the stock market over their lifetime, and only 1% of investors make half of the money made on wallstreet. Many of those "buy the finest" buy at the tippy top and sell at the very bottom.  If you have a "bargain hunter" personality, consider it a gift, but also consider sharing those ideas with people who aren't so fortunate in this game.

S&P Daily Chart

S&P Hourly Chart

S&P 1 min. chart


The U.S. Dollar
 
I just wanted to point out that on all intra-day (5min., 15min, 30min, 1hour) time frames the dollar has formed bullish divergence. A reversal is imminent and would correspond with pressure in the equities market.

S&P with MACD indicator








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