The reason why the stock market makes people irrational

The reason why the stock market makes people irrational 

For the vast majority of scams, whether people are cheated or not often does not depend on how skillful the swindlers are, but on how strong an unfulfilled desire in our hearts is. The liar is just a match. The deep-seated desire and appeal are a lot of dry straw, and the reason is the only firewall between the two. So the best liar is not to perform, but to induce your secret needs. The reason why the stock market makes people irrational is very similar. It is not difficult to predict the outcome of throwing the hungry desire into an environment full of myths and extremely free action.

Therefore, self-emotion control can be summarized in two words, that is "rationality". The basic characteristics of rationality are that it is not easy to be impulsive, not affected by emotion, attaches importance to evidence and logic, and is not easy to be affected by external pressure and lose normal thinking and judgment. In my opinion, one of the important reasons why rationality is difficult to maintain is the loss of common sense and worrying about gain and loss. Most of the reasons for the psychological imbalance are the fear and greed which are difficult to contain in the face of the changing market.

The development of the modern financial industry and the joint efforts of all parties' interests have provided investors with unprecedented transaction convenience and information coverage. However, this technical progress has not made any change in the gloomy outcome of the public in the stock market compared with decades ago. On the contrary, the accessible trading buttons and the Omni-directional bombing of "Financial Highlights" only add "anxiety" to the traditional "fear and greed" of the vast majority of people. Take a look around us. Who is the most enthusiastic person in the media who has created the wealth myth in the shortest time? Almost all the most popular blogs in the public predict the rise and fall of the market (even the hottest blogs have predicted the rise and fall of the market in the next minute). The bookshelves in the shopping malls are full of books and magazines that promote easy and big money, such as "capturing the limit board", "supreme stock selection" and "easy to make 1000 times". In the stock market, there will always be an atmosphere of catching up with each other. Many people were infected by this atmosphere. Their mood fluctuated with the ups and downs of the K line and finally lost their reason.