You can hold your statement as correct but it’s incomplete. I’m not competing with you. Learning is all the time and everybody has the potential to teach, especially with money stuff. I’m always listening too.
Now, the following is not true for commodities markets. But for stock markets, they’re emotionally driven.
So if someone wants to crash the market, they create a big enough news to cause a panic sell off or a panic buy.
There are still two main investing types: George Soros and Warren Buffet.
Buffet is buy-and-hold.
Soros is emotionally-driven market. All investors are combinations of both styles. I think there is a 3rd style as well distinct from them but these still dominate.
George Soros’ REFLEXIVITY is what i’m mostly referring to. His style absolutely DOMINATES the markets over the last 30 years, growing as more short term investors joined the marketplace via the internet.
—
Perfect extreme examples of George Soros’ Reflexivity theory in recent history might be the bitcoin buys and sales and the hysterical example of GAME STOP.
100% community emotionally driven. So Soros in nature. He nails the sociology of humanity perfectly here.
—
Nobody can set aside their emotions though. That’s what’s hysterical about it.
Even when you automate it, you’re automatic it to your own emotional states to your preferences.
—
Yes, as a goal. But it’s a goal because it’s impossible to achieve. In the end, you STILL endure ONLY to as much as you can TOLERATE – and it is STILL an emotional decision at that point.
It’s a better emotionally REGULATED decision, but still emotional.
===
Reason only tempers the emotions. It cannot eliminate them. That’s why endurance training is good: it can allow you hold back your reactions. But you’re still reacting.
And if you break your emotions where they don’t work anymore, well, your decision making capabilities are shot.
People with damaged amygdalas can’t make decisions. They waffle back and forth without resolution because you need an emotional push to make any decision.
===
It does though. You have to care. You have to be attentive. The numbers help. Statistical analysis is great. But buried in all the TA _is_ the algorithms of many stereotyped human emotions.
It is like a coarse human brain there. They’re coded human reactions in all of those thousands of metrics.
That’s what’s amazing about them – and it is why TA can fail because they don’t capture all human emotion in decision-making but a subset.
—