What are the advantages of personal psychoanalysis?
In addition to fundamental analysis and foreign exchange technical analysis, which are generally accepted by all of us, as prices are largely influenced by market psychological expectations, it is also a feasible method for individuals to judge the market trend through market psychological analysis.
Individual wager that is composed of innumerable individual market, everyone have their own mental judgment of market and price positioning, the idea of millions of people work together to affect the developments of markets in the future, may be one person to the person’s market, its participants is “people” and “person” to control the investment institutions, and capital flows are reflected through participants’ expectations,
So the direction of the market is controlled by psychological factors.
Another way to think about it is to say that the capital flow is in the hands of the market participants – “people”.
Capital is controlled by people, so the common psychology of the masses has a great influence on the direction of the market, sometimes even the decisive factor.
The principle of using psychological analysis to complete an operation is that the price fluctuation starts from the disunity of the public psychological price, and starts from the break of the basic equilibrium.
When the market is in turmoil, the price will be pushed up or down under the influence of a new psychological “consensus” of the public until there is a psychologically acceptable mass price.
At this PRICE, the forces OF the long and short sides are basically balanced once again, and the market begins to basically maintain the consolidation situation, and a rising (falling) market ends here.
We take profits. One operation and done.
All we have to grasp is the direction of the market when the public psyche reaches a new “consensus”.
Individual wager on the psychological analysis, in fact, there are both fundamental analysis of the factors of foreign exchange and foreign technical analysis factors exist, is a way of between subjective and objective analysis, based on the data, in investors’ expectations for tools, focus is to maintain a more neutral and objective attitude to analyze the psychology of the market direction.