Mass Psychology
I have been doing some reading on trading methods, and I have found that understanding mass psychology can be really helpful in reading market trends. Are there any suggestions of books that will help me learn "mass psychology" that could be applied to market trends? Thank you.
This is an area that I'm fairly familiar with since I've been developing and testing trading systems for more than a year. Mass psychology, or herding, should be apparent by prevailing trends within financial and commodity markets. Your objective should be to diversify into numerous liquid markets, bandwagon these trends when they start, have a robust money management system knowing that you'll be wrong far more than most of the time and ride out and pyramid those massive trends in order to have gains that vastly exceed the value of losing trades. Do drop me a PM with your email and I'll echo back some pdf copy of books re: systematic trading.
Is this similar to behavioral finance or is it more technical than that?
The General Theory of Employment, Interest, and Money by John Maynard Keynes. See the section on "Inducement to Invest".
Soros' Alchemy of Finance, specifically reflexivity and the boom/bust model
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