People in a positive mood may credit economic conditions for their personal situation, and a singular positive one-time news event may trigger a long-time bullish investment. Thus, unconscious moods can influence conscious financial decisions via an external event, but the root cause is the current underlying sentiment. Cycles are the important structure here because sentiment does not jump rapidly from one state to another. A change of mood requires time; therefore, sentiment moves in dynamic cycles or waves. Therefore, the significant challenge is to spot and predict the turns of the mood cycle. For Cycle Analysis, you can consider using the "When To Trade" tool.
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