Financial Psychology - grasp the essence of market volatility

The main purpose of professional investment value is found. For example, you can buy a financial instrument, waiting for the price rise. And then sold. Benefit from.

However, only taking into account the value has been underestimated is not enough. The price of financial instruments will never change, when the price deviated from its intrinsic value, it is always worth the Tonggui. However, the prices of financial instruments sometimes because of other reasons to change.

The book is the discussion of these "other reasons", mainly on how psychological factors drive the financial asset price changes.

Financial analysts and professional investors have been writing a lot of price changes on an internal driving force for the financial books and articles. Most of them use the so-called technical analysis of this issue, the main form of profit

With graphics on the market structure and shape. Some of these books and articles in other professional investors and analysts in the very popular. The main reason is: the majority of the financial industry professionals believe that the financial price changes in the structure and the existing model. However, it is always interesting and exciting is that the shareholders of the very few books and articles trying to explain why their effective application of the method, they put the experience of most of the theory did not receive appropriate support.

Another part (of the larger proportion) of the literature on the market by the scientists wrote. Guo points Perhaps some of this dull, but its strength is that they are from a scientific point of view on the market. Most of them concluded that: the market price changes are random or close to random. This seems to indicate that the entire financial asset price changes is not very meaningful.