
You wonder why the sudden movements of markets from one extreme to another, or why the market may decline in the face of good news and rising bad? It sounds crazy, right?
Well, several times the stock market movements are based on more new information, such as reports of corporate profits or rebates … markets are often driven by investor sentiment. Psychological factors not only affect the average investor, but also the professional fund managers tend to be motivated by greed, euphoria and fear!
Behavioral Finance
Believe it or not, there is a legitimate field of study is to quantify the impact of emotions, psychology and behavior of investment and financial decisions – which is called Behavioral Finance.
















