Trading with Crowd Psychology (Wiley Trading) Hardcover – 8 Nov 2000
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Gyllenram untersucht das Kaufverhalten von Anlegern verschiedener Weltmdrkte. Der Psychologe gibt Tipps, wie Anleger Fehler bei Investitionen vermeiden kvnnen. Financial Times Deutschland 17.01.2001
"Investing is first and foremost a psychological process and good market technicians are really psychologists. Mr.Gyllenram understands this and his book offers deep insight into the psychology of the trading range, the area from which big moves–up and down–emerge."
––John Bollinger, CFA, CMT, President www.EquityTrader.com
"Every trader and investor will recognize themselves and their habits (good and bad) among the characters whose trading decisions are so vividly described in this book, and all should discover ways of improving those trading decisions. A very timely publication."
––Michael Smyrk, Global Coordinator, International Federation of Technical Analysts
"Carl Gyllenram takes a new approach in looking at the workings and importance of crowd psychology in the financial markets...(he) shows a clear understanding of the subject, providing a thoroughly useful addition to the writings on crowd psychology."
––Anne Whitby, FSTA, Vice Chairman, Society of Technical Analysts UK
"We are an emotional species and seldom more so than when dealing with money. It is this raw human factor which creates most of the volatility in all financial and commodity markets, not economics...With this book Carl Gyllenram has made an important contribution to the subject of Behavioral Technical Analysis."
––David Fuller, Global Strategist at Stockcube Research Ltd. and writer of the Fullermoney investment letter
Top Customer Reviews
Can help in developing of one's investment strategy.
If you know all there is to know about the stock market this is still useful as it helps to show what moves prices other than the fundamental news.
Most Helpful Customer Reviews on Amazon.com (beta)
I also found the book helpful to me in understanding the psychology behind trading ranges and breakouts.
So says Carl Gyllenram, author of "Trading With Crowd Psychology," a book that claims market analysis is more behavioral science than anything else. While allowing that economic information and fundamental changes produce major market shifts, he believes that the conformist (and predictable) behavior of market participants -- the crowd -- is what usually drives price action.
Some traders and investors react late to changes in the market because they rely solely on fundamental and economic information available to everyone else. Others may use use technical analysis -- but end up trading off of conflicting indicators and/or stereotyped chart patterns.
Chart patterns are "people patterns," says Gyllenram, reflecting the behavior of everyone buying and selling in the markets. A successful technician understands the psychological dynamic (hesitancy? panic? resignation?) at play within these patterns, most all of which, he maintains, are simply variations of a trading range. Markets most often move laterally, with little significant price movement up or down.
An intuitive feel for market psychology helps the trader or investor understand how these trading ranges are structured.
Of particular interest to me were "balance points" -- those price levels at or near the top and bottom of a trading range that serve to predict a powerful price breakout. "You can never be sure," he says, "when a range will be broken or what direction a breakout will take. But trading with an understanding of crowd psychology and the ability to identify balance points certainly increases your odds. The important message you need to be able to read in a chart is when a clear change of the psychology is taking place. You must understand that the creation of a balance point is a powerful indication that the behavior of the market majority has shifted."
Gyllenram uses a clever approach to help us understand ( and profit from) the phenomenon of crowd psychology as it relates to market analysis: He uses a number of characters, each representing a different "category" of investor who own positions above a trading range (after a long uptrend), as well as below it (after a steep decline). What all have in common are emotional patterns of crowd behavior formed after large price movements (up or down) that make people nervous, excited or otherwise irrational.
Which character will remind you...of you?
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