Friday, July 2, 2010

Stock trading for dummies means that all investors tend to think alike

In other words, stock trading for dummies investors often follow the crowd because, in the most basic biological levels, compliance is comfortable. Moving in herds not only gives investors a kind of sense of "safety in numbers" but also gives them pleasure.

That may explain in part why the mood of the stock markets can change so suddenly, why is it so difficult to find stock trading for dummies investors who are truly counter and why are so concerned about the "consensus approach" of Wall Street.

In the experiment, researchers from University College London and University of Aarhus in Denmark to 28 participants were asked to put together a list of songs they wanted to buy online and then decide what their favorite. Then they showed the skills that gave those songs two experts in music. Meanwhile, a device registered magnetic resonance imaging patterns of brain activity. Finally, to measure the influence of expert opinion, participants could change their minds about what their favorite songs.

Brain images showed that participants as soon as they learned that they had chosen the same song that the experts, the cells in the brain neurons loaded with dopamine, a reward center responds to pleasures such as sugar and sex, showed immediate signs of activity.

"If someone agrees with your stock market opinion, it is inherently satisfying, the way in which food and money are gratifying," says Chris Frith, one of the researchers, from University College London. being right is ione of the greatest ways to use the stock market for dummies system.

Why might the views of another person lead you to change your stock market opinon on the value of something? His assessment could make you feel insecure and that theirs is correct. Could become more popular if it agrees with others, or join the experts could make you feel like one of them. "We are very social creatures," says Professor Frith. "We desperately to be part of a group."

No comments:

Post a Comment