New Laws of the Stock Market Jungle, The: An Insider’s Guide to Successful Investing in a Changing World

Chapter 3. Approaches and Attitudes

Investing and reason frequently give way to speculation and emotion.

Although attitudes have begun to change in recent years, there is still widespread reluctance to admit that market players are often irrational. This is despite the fact that most people, even those who have never traded a share in their lives, intuitively understand the cliché that fear and greed are the primary drivers of investor behavior. Some textbooks and personal finance tomes make reference to the emotional elements that influence buying and selling, but many commentators still appear to believe otherwise. They argue—or tacitly support the view—that thoughtful analysis and levelheaded decision-making invariably dictate future stock ...