Wednesday, November 24, 2010

understanding crowd - II

As already mentioned (in part-I)

a crowd is not a crowd in psychology till it has certain characteristics.

In psychology,

Group + Influence = Crowd

So the important factor is

"Influence"

Who influences?

What influences?

Is it the politics?

economics?

A group of sheep never goes anywhere!

So, the influence on the group is rarely from inside.

It has to come from outside!

Political or Economical developments are definitely among the influences!

But these have small effects.

Sheep traders, who are majority in number but minority in value

don't move much immediately in the wake of any political or economical happening!

they just wait for secondary triggers - initial outcome of the original happenings.

so, who decides those secondary triggers?

who is behind those thick dark veils in the market ?

who actually influences the stock market crowd?

It is "the big money"

it constitutes FIIs, DIIs, Funds, Banks, and alike.

the big surplus money flow in the world comes in handy in such adventures!

These big pockets can kneel down an elephant what to talk of overbought RSI

and jack up the blue-whale what to talk of severely oversold SMA

They can bulldoze the logic

and create severe ripples of sentiments...

...

...

...

(to be continued)

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