If its operators suffer from crowd psychology?
Special laws begin working in world markets as they develop and grow. These are the laws of great masses, which come from the psychology possessed by group of individuals' activity or in other words the way the crowd, constituted by financial and stock market participants, acts.
Psychologists proved that the crowd rarely acts according to conscience. Even the most intelligent ideas of experts in the financial mass media are built on an irrational basis, because the crowd usually fails to understand rational arguments.
Moreover, the players rarely have time to think over the situation under conditions of quickly changing financial market views. Even professionals are guided by emotions, looking to some well-known financiers (like George Soros) as role models. Some of them also consider the opinions and thoughts voiced by rating agencies or of research and information centers to be nothing but the truth. As a result, the crowd intellect level falls to the basest animal instincts of greed and fear. To one degree or another these instincts are attributes of all individuals, and market players have their specific type. The behavior of numerous operators, influenced by their illusions, goals, desires, and ambitions can cause extreme market instability.
Every operator free from stereotypes has his own opinion about events, which may influence the situation on the stock market. If his actions were based upon objective facts and information and never knew any opinion other than his own, the market would have been more predictable. However, human nature can interfere with this process, because it carefully selects information, which can affect the interests of either players, or the socioeconomic groups they represent.
Since information inflow increases every day, more and more market participants become headline readers not interested in the problem itself. The desire to govern the information flow to such seekers of standard decisions and consumers of ready-made conclusions can achieve much, for it is precisely they who through their unconscious actions make the market climate.






