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Market Psychology

Market Psychology

In financial markets, it is necessary to use analysis methods effectively in order to predict the change in asset prices. When the basic, technical and psychological analyzes are known, why and how they are used, it is observed that the productivity of the investments together with their profitability increase.

In the analysis methods mentioned, a subject that needs to be examined under psychological analysis is altında market psychology B. The first concept that comes to mind when it comes to psychological analysis is the behavior patterns of the people performing transactions in financial markets. However, in this method, which is a complementary role to technical and fundamental analysis, market psychology should also be an important issue to be examined.
افضل شركه فوركس
The concept of market psychology, which first appeared in 1985 on ı sosyonomi inin, also elaborates on the results and causes of the movements of the people.

First of all, the causes of trends in asset prices should be understood correctly. Because the toplu market expectation comes out of expectations and expectations toplu rule is the result of the behavior of market participants in the same direction. For example, everyone's starting to buy gold will increase the price of gold depending on the relationship between supply and demand. An upward trend can be seen in the graph of precious metal, where market psychology provides valuable information to the investor by examining this trend and its causes. The reason for the ascension and the fact that the market participants are pricing what they are causing in this trend makes it possible to make a prediction about whether to stay in the current trend or whether new positions should be opened or not. Of course, along with basic and technical analysis in the decision-making process, psychological analysis works in a whole and complements each other.

For example, after the meeting of a central bank, the head of the bank said that inflation is high in the country and that they can make moves to lower it. Investors know that by using basic analysis information, the classical central bank policy in the fight against inflation is a rate hike. Since the rise in the central bank's interest will mean a short-term appreciation of that country's currency, market participants increase the weight of the currency in their portfolio. The coat of arms of the asset, which they think will gain value at a later date, increases the value of this currency even though no interest rate hike has been made yet. Unable to take part in the first step of the news, process makers can then use the technical analysis information to try to achieve low levels in the upward trend for this currency and then join the pricing.
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After this stage, market psychology, if there is no other important development that will lead to the end of the trend, will make the movements in the direction of the trend until the interest rate increase or this expectation is completed. Of course, within this orientation, various factors and push-and-shoot movements will certainly be. However, the main determinant is the position of the market participants, who take the same direction, to review the basic and technical analysis. If the cause of a trend is known, it is possible to determine which factor will be found to be the last one. We should add that, in case of a rate hike at the end of the pricing, the position closures can be followed and the short-term value losses can be followed in the currency by m exiting from the expected expectation Ör. Nevertheless, the fact that the central bank does not raise interest rates means that expectations will be wasted, while it may cause hard value losses in the related currency. Market participants exit from the foreign exchange with the expectation, and increase the supply of the country's currency and cause the value to fall.
The concept of market psychology, which is valid in all markets in financial markets, assumes that all investors have a position by interpreting the economic data correctly. However, this is not the case in real markets. Therefore, the difference between the winners and those who suffered from damage is due to the fact that the methods of analysis are combined correctly with the psychological factors. How people feel, or what they feel, to invest, has been the subject of many researches around the world. One of the propositions of the science of science gave a different perspective to this situation. The expression ’people are happy because the stock market is rising om is a false discourse for the advocates of this view.

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