About

About

Investors Psychology is an educational website focusing on covering topics in regards to investment psychology. It produces content useful both for laymen investors as well as professionals. The writer holds a medical doctorate (M.D.) and is specializing in Psychiatry, and has a lifelong personal passion for personal finance and investing.

Invest in yourself for a better economy. In practice, this means that you need to understand yourself in order to understand your finances.

Contact: investorspsychology@mail.com

Best Regards,

Martin

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Popular Posts

Therapy When You Have No Money: Coping with Life's Challenges on a Budget

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Therapy When You Have No Money Life can be tough, and we all face challenges that can leave us feeling overwhelmed, anxious, or even depressed. In an ideal world, we'd have the means to seek professional therapy to help us navigate these rough waters.  However, when finances are tight, and the prospect of affording therapy seems like a distant dream, what can you do?  This the though reality of an increasing amount of individuals, especially with the worsened financial climate. This InvestorsPsychology attempts to provide some alternatives for therapy on a budget. Photo by Towfiqu barbhuiya at Pexels.com Seeking Support on a Tight Budget One of the most important steps in bolstering and protecting your mental health is making sure to talk to someone about your problems.  Speaking to others not only eases the emotional burden of your struggles, but also forces you to reflect and gain valuable perspective, which is a vital component in recovery from poor mental health. Be...
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Stock Market Psychology: Use it To Your Advantage

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Stock Market Cycles Chart Stock Market Psychology Grasping the stock market psychology is not too hard, but many investors are unaware of its existence or thoughtlessly neglect it while planning their investment strategies.  For long it was thought that the stock market must act rationally and sooner or later correct itself. Some investors still hold onto this belief, which is known as the " efficient market hypothesis ".  However, in modern times market psychology has been prone to more in-depth research. Nobel prize-winning Daniel Kahneman was one of the first economic researchers to doubt the validity of the efficient market hypothesis. Together with the famous cognitive and mathematical psychologist Amos Tversky they challenged the notion that the markets would always make rational decisions made on relevant and publicly available information. They made the case that humans suffer from a palpable cognitive bias when it comes to financial decision-making and specifically ...
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Market Cycle Psychology: What You Need to Know

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Market Cycle Psychology Market cycle psychology is an interesting phenomenon. The price trend in different markets tend to follow certain patterns (whether it's stocks, commodities, housing, or cryptocurrencies). This holds especially true in a so-called market bubble . Market cycle psychology is not an exact science but can roughly be explained by the nature of human psychology in relation to fear and euphoria, as well as collective thinking .  Fear and euphoria play an important role in investors psychology in general.  Fear of regret , for example, is a well-known concept that refers to the human mind anticipating regret and subsequently avoiding it. The infamous FOMO, also known as fear of missing out , is strongly dictated by fear of regret. Strengths and Shortfalls of Market Cycle Psychology Understanding the concept of market cycle psychology can be beneficial on a macro scale when determining in what strategic direction you want to take your investments. Knowing in wh...
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