My Trading Adventure

Monkeys See Monkeys Do

CP TEH
Publish date: Sun, 30 Oct 2011, 04:54 PM
CP TEH
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All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.



Heard of the term 'herd mentality' in trading or investing, right?

I will want to write more about it as it is affecting most of us ... when market rebounds higher, we tend to be overly-optimistic and ignore the logical thinking. We tend to follow the crowd and convinced that it is the direction we should be following. Nothing is wrong about that ... it is our instinct. It is in-borne in us ... we have our genes to blame? Hmm ... in trading and investing, we do need COMMON SENSE, not our overly- charged emotions(up or down). That is why we have guidelines ... such as PE/PB etc ... or RSI/MACD, for example.



TEH
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