Psychology has a lot to do with how we respond to the share market and I speak from the perspective of someone with a Masters Degree in Forensic Mental Health.
Here is just one theory (and I will keep this very short)
Social Psychology - 'Attribution theory'
'Self serving attributions' - this states that we explain good things on internal factors i.e. I am a genius because I bought SSN but bad things on external, situational factors i.e. it is not me that is at fault, is is SSN and the ASX.
As the rational traders and investors on here know, there is nothing wrong with SSN. It is one of the best performing stocks on the ASX in the past 12 months; it is exploring for and producing oil, in the USA where the govt is actively supporting oil exploration in order to become 'oil independent' (see footy's posting yesterday); the economic law of 'supply and demand' is working overtime in favour of SSN, due to the Middle East/North Africa crisis i.e. the demand for oil continues, even when supply is restricted because oil to the industrialised countries is still the most important source of energy.
In other words, if you think there is a problem with SSN, you need to go back to the research. It would be hard to pick a better stock than SSN, in my opinion. I have bought more SSN this week, so am putting my money where my mouth is. I will buy more next week, if I can free up some cash from another source, hopefully before the Earl 1 well is fracced.
All of the above is my personal opinion. DYOR.
SSN Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
