Investor Psychology Bangla is the investor sentiment. Understanding investor psychology is very important for the stock market. All those who invest in the stock market are human beings, not robots. If you want to be successful as an investor then you need to understand Investor Psychology along with technical analysis, Fundamental Analysis etc.
Definition of Investor Psychology: The effect of share price fluctuations on the market as a result of the general investor sentiment in the stock market is called Investor Psychology.
Investor Psychology Details
You need to understand the behavior and attitude of other investors about the market. Investor psychology can help you understand what they believe, how they work, what kind of news the market creates, what news markets are booming, investor confidence in any news increases or decreases. Many times investors do not understand the psychology of buying good shares at the right time can not be profitable.
This psychology refers to the current sentiment of investors in the stock market at any given time. For example, a sudden rise in investor confidence causes the market to rise, just as sales pressure increases and confidence goes down.
While the price of a share is largely dependent on the demand in the market, many times investors depend on the psychology. For example, if a “Z Category” share becomes delisted today, the next day, the price of the shares of another Z Category will fall. Because then investors will have a fear of whether the shares of the other Z category they hold in their hands become delisted. As a result, the sale of shares of Z category will increase in the unusual way and this will reduce the share price of Z Category. The general investor confidence or attitude influences the price of such shares.
Read more – Never buy shares with bank loans
Investors’ psychology is very important for our country’s stock market, which can increase profitability if we understand it.
What can happen if investors do not understand the psychology of the market:
- Blindly one or two shares fall.
- If the price goes down, come out with lots of losses.
- Selling shares at a small profit.
- Could not understand which sector to play.
- Holding money by buying shares at high prices.
- All of the cash money is used.