PNV 3.57% $2.43 polynovo limited

The Psychology of Trading

  1. 257 Posts.
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    given that things have been a bit crazy in the last three weeks, this as the short position numbers have gone through the roof, I thought it might be useful to to stat a thread on the, psychology of trading...
    first some background...
    Bion was an analyst and expert on groups and group behaviour. He believed that when a group was functional, the majority of the group members focused on the tasks at hand eg: reading the analyst report by Macquarie to understand the finances, reading articles on burns / wounds / hernia / breast pockets / diabetes / drug delivery, to better understand just how useful BTM is and will be.
    However he also believed that within any group there were what he termed group saboteurs. These were people opposed to the aims of the group - in this case promoting honest, intelligent discussion.
    He believed that when a group became dysfunctional, the saboteurs / troll, of which there seems to have been a preponderance in the last three weeks, take over.
    The trolls then promote stoke one of three positions in the functional members...
    the depressive - we are rooned, the shorts have bots and algorithms, money, the afr. they will win
    the paranoid - they (Regal) will get us .. wait a minute you're working for regal.. oh shit, I (a long term holder) don't know who to trust anymore
    the saviour - I as a long term holder, believe it will be alright DW will save us .. oh shit that will be at the end of next month...

    so to all LT holders I would simply say, don't engage with the trolls, they want to shift you from being functional (logical and reasoned... which is how, I assume, most of you ended being LT holders of PNV)) to being dysfunctional (emotional) and wedded tone of the three positions I have outlined...and why is that a problem ... well because emotional people make mistakes ...
    the depressed position is not healthy - yes they the shorts have bots and money but so do a lot of other players (as the afr pointed out, PNV seems to have a lot of rusted on holders) and when they think Regal is over stretched they will have him for lunch
    the paranoid position is not healthy - this one is no good because it causes too much stress, even though I also think that most of the trolls work (in some way) for the Regals of this world, either that or they are very sick puppies indeed...
    finally I would say that the saviour position (DW buying even more shares than he already has) is really not needed at this point in time... PNV is a big boy now and it can look after itself
 
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