Short Term Trading Weekend Lounge: 8 - 10th Dec, page-18

Trading Psychology that is heavy s---.
Call it an observation of trader behaviour but one aspect I really follow.
Many buyers get excited and hyped to such an extent that they buy big, $50k parcels and post on H/C and it almost starts a herd frenzy. Notable examples are IAM, CR8 .  and just recently 4CE .
Sometimes they may be big experienced traders but mostly they are not they have lost reason and go on a binge.
Sometimes they may get lucky and the price keeps rising but when it doesn't and the binge is over then the despair sets in and they either sell at a loss or become determined to believe, hold and get their money back.

How to take advantage of this .
Well a lot of low down unscrupulous posters thrive on trying to create this situation. Work out who they are and try and buy in before the sermons and hard sell start.  Like winning the lottery when you are holding before the herd charge in. Sell to them block out the b/s and do not get converted and become a believer.

Technically a star system