"The Psychology of the Stock Market: Fear, Greed and Panic" by David Cohen
Surprisingly, all strategies and methods of market analysis are worthless without knowledge of the psychology of stock trading.
For some reason, it is this aspect that receives the least attention; most beginners begin their work by searching for secret strategies or tactics.
But as the history of many great financiers has shown, psychology is the main factor that helped them achieve success.
In most cases, people’s actions are controlled by three emotions - fear, greed and panic, and these are the ones that will be discussed in David Cohen’s book.
The book is quite large, so I would like to dwell only on the main points:
1. A thousand ways to remain without pants - the passion for speculation on the stock exchange is very reminiscent of the gold rush, the history of speculative manias.
Stories of the best traders - http://time-forex.com/treyder
3. How we learn to hate information - how to benefit from information, analyzing history and obtaining data from the media.
4. On the verge of collapse or the secrets of the exchange business - the kitchen of the exchange, participants in exchange trading, relationships with their broker.
5. Psychology and great investment gurus - thoughts on what successful investments are based on from great financiers.
6. Illustrative examples - examples of transactions with certain securities will help you visualize, guided by what principles people buy certain shares.
7. Honesty, scams and financial IQ - what pressure methods can be used to force you to buy a security.
We can say that this book is one of the most interesting books dedicated to trading on the stock exchange, but this is just my personal opinion.
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