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TradersCALM - Crowds © "Dedicated to trading with good feelings." All services are free. |
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This is an interesting subject. While crowd behaviour is dominated by fear and greed, there is a pattern to the behaviour. Crowds operate on shared emotions, feelings of self-righteousness, justified by the very numbers of others doing the same thing at the same time, irrespective of the effectiveness of the strategy being adopted. Anyway, exercise of emotions gets in the way of any evaluation of success. Members of crowds are high on natural drugs released in the brain. But do not look down on crowds (a kind of self-righteousness of its own): we all express fear sometimes, we are crowd animals, it is the crowd that puts most of the trading profits on the table. |
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