Trading psychology is a discipline that studies the mental activity and behavioral performance of traders in the trading process. It is designed to help traders better understand their psychological characteristics and behavioral preferences, so as to better adapt to market changes and improve trading efficiency and success.
Behavioral Finance - Artillery Theory Fundamentals of Trading Psychology.
The fundamentals of trading psychology include factors such as market inertia, momentum, cycles, emotions, etc. ** is one of the most sensitive factors in the market, reflecting the balance of power and the spillover of psychological pressure between buyers and sellers. When the ** fluctuates greatly, it means that the psychological state of the market participants has undergone a major change, which may be caused by information asymmetry and emotional changes between buyers and sellers.
Market inertia refers to market participants' perceptions and beliefs about past market behavior, which affects their expectations and reactions to future markets. When the spread widens significantly, it indicates that market participants are feeling greater uncertainty, which may be caused by market participants overconfidence or blindly following the herd.
Behavioral Finance - Artillery Theory Fundamentals of Trading Psychology.
Momentum refers to the flow of money and information in the market, which will propel the market towards a trend. When momentum continues to increase, it indicates that market participants have strong confidence and expectations in the trend, which may be due to market participants' optimism about the prospects of the industry or due to the herd effect of investors.
Cycle refers to the regularity of market operation, which arises due to psychological changes in market participants. When there is a cyclical ** or ** in the market, it means that the mood of the market participants has fluctuated, which may be due to the long-term trend of the industry by the market participants or due to the fear and greed of investors.
Emotions refer to the feelings and experiences of the human heart, and it affects people's cognition and decision-making. When a trader's mood is in a bad state such as anxiety, fear, or greed, it may lead him to make irrational decisions, such as blindly following the herd, chasing hot spots, etc.
Behavioral Finance - Artillery Theory Fundamentals of Trading Psychology.
In conclusion, the basis of trading psychology includes factors such as market inertia, momentum, cycles, emotions, etc., which interact and jointly influence traders' decisions and behaviors. Understanding these factors can help traders better adapt to market changes and improve trading efficiency and success rates.
*Factors have a variety of techniques in facilitating closings, here are some examples:
Don't sell below the psychological floor price: When consumers learn that the ** price of a certain item is lower than their psychological floor price, they will feel very excited and nervous, and thus more likely to make a purchase. Therefore, businesses can attract consumers' attention and motivate them to make a purchase by setting ** slightly lower than the consumer's psychological floor price.
A small number of shots above the psychological floor price: When consumers learn that the ** price of a certain product is higher than their psychological floor price, they will feel uneasy and disappointed, so they will take a wait-and-see attitude towards purchase. Therefore, enterprises can attract the attention of consumers by setting ** slightly higher than the psychological floor price of consumers, and prompt them to make small purchases and gradually increase the purchase volume.
Equal to or close to the psychological floor price to make an appropriate amount of shots: When consumers learn that the ** of a certain product is equal to or close to their psychological floor price, they will feel more satisfied and reassured, thus generating the desire to buy. Therefore, companies can attract consumers' attention by setting ** slightly higher than the consumer's psychological floor price but not exceeding the appropriate range, and prompt them to make small purchases and gradually increase the purchase volume.
Market-as-you-go method: This is a relatively passive pricing method, that is, the market determines the price of goods according to factors such as market, supply and demand, and competitive conditions. This approach can guarantee the profit margin of the enterprise, but it requires the enterprise to pay close attention to market changes and react in a timely manner.
In conclusion, psychology has a variety of techniques in facilitating closing, and businesses can choose the right pricing method according to different situations and purposes to achieve the best results.