Market Sentiment — Mass Psychology for Successful Traders
Trading is not only about the decisions you make, it is also about the decisions other market participants make . When working with financial instruments — be it Forex, contracts for difference, cryptocurrencies or anything else — you definitely want to know how the rest of the trading flock feels. Just because the degree of your success will depend greatly on the behavior of the market in general. The performance of any financial asset is affected by the people who trade it. The market sentiment is the prevailing attitude of traders. The trend is never being created by itself, rather it is a product of many deals carried out simultaneously by a huge number of traders. If the amount of people who want to buy the asset is higher than the number of those who want to get rid of it, the sentiment is said to be bullish . If the opposite holds true, the sentiment is considered to be bearish . During the periods of bullish sentiment, the asset price goes up. When the sentiment is bearish,...
Comments
Post a Comment