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  Index Page » Finance & Investment » Investment
   
 

100 - A Psychological Barrier, Or Just A Number?

   
Author: Hans Bool

Hundred (100) is a magical number...if you feel that way. For the rational minds between us, it is just a number. How many of those real rational minds are there amongst us?

Before the introduction of behavior finance, the economic man was a welcome guest amongst the economists:

Homo economicus is a term used for an approximation or model of Homo sapiens that acts to obtain the highest possible well-being for himself given available information about opportunities and other constraints, both natural and institutional, on his ability to achieve his predetermined goals. This approach has been formalized in certain social science models, particularly in economics. (live from the Wikipedia)

If you observe the stock market however, you will soon doubt whether this (rational) man is always present...If you are to explore the depths of the stock-market, you are better off understanding people, than understanding money, finance or business...

In fact; Money, Finance and Business is again moved by...people. By us!

And having said that in the area of investment, you should ask yourself, how should I analyze the stock market?

If you feel that 100 is a magical number you will probably favor technical analysis. 100 could be a supporting or a resistance level.

Or if you think that 100 is just another number you will certainly prefer fundamental analysis. It is not about what people feel, but about the fundaments that support our economic system...

This (article) could be very well another one minute assessment. Choose what ever you think fits best when being challenged by the stock market. And don't forget to act accordingly...

Author Bio:

Hans Bool

Hans Bool has worked for many companies in many countries in different (mainly) management positions.

Recently he started Astor White. A company that offer a new approach in management advice and consulting.

You can search for this article using: real estate investment, real estate finance and investment, best money investment
 
 
 

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