Like I have noted in this post, Volume Spike and Trading in DSE, I bought BRAC simply because of Volume Spike! Nice to see it is rising nicely! It has already completed its first pullback pattern…
My short introduction to Volume Spikes in Dhaka Stock Exchange
I read the book last year. I am re-reading this book. And I found this book quite amazing. Most of the points that this book puts forward are familiar to me,as I suffered from them in my own trading!
Human behavior is almost always the same everywhere! And we traders also act and react to the market in a certain way.
For example,in the following passage,the author rightly points out a very important behavior of the traders,investors in the market:
Neuroscientists have recently uncovered two particular traits of significance to investors. The first is that we are hard-wired for the short term. We tend to find the chance of short<term gains very attractive. They appear to stimulate the emotional centres of the brain, and release dopamine. This makes us feel confident, stimulated, and generally good
Here is another important point. This point is very important because of the way we suffer from FOMO in the market:
The second is that we appear to be hard-wired to herd. The pain of social exclusion (i.e. betting against everyone else) is felt in exactly the same parts of the brain that feel real physical pain. So pursuing contrarian strategies is a little bit like having your arm broken on a regular basis!
A great book!!!!
I have made a summery of the book for myself which can be found in this link:
Here is the link to the book:
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