Psychology Marketing

          Market psychology is a term used in the world of high finance to describe the investing behavior of the masses. The general concept of market psychology is related to efficiency. In theory, if people always behaved logically, the market and the economy would always make rational sense in relation to each other. In reality, people don’t always behave rationally, and often their actions have more to do with emotion than any logical motivations.

market psychology 

         Sometimes market psychology has good reasoning behind it. For example, if traders see the economy falter, they will often become reluctant to trade, and the investment markets will turn sour. At other times, things that are totally unrelated to finance can send the market into a sudden dive or climb. For example, an international incident that makes people fear a possible war may not have any immediate financial impact, but it can potentially make investors reluctant to trade anyway.