Sol Palha is a self-taught Student of the Markets, having widely read conventional and non-conventional texts on all aspects of technical analysis, Mass Psychology and philosophy.
Mass Psychology should not be confused with contrarian investing, even though contrarian investing is a part of this field. Mass psychology dictates that one should not take a position that opposes the crowd until the emotions have hit a boiling point. For example, using the principles of mass psychology one would not bail out of an investment simply because the crowd turned bullish. In fact, when the crowd initially embraces an investment, one should actually increase one’s position in that investment. Mass psychology dictates that the time to bail out of any investment is when the crowd’s emotions are seething; a feeding frenzy stage or euphoric stage. At that juncture, the prudent action is to bail out and take a position that is opposite to that of the masses. When technical analysis is combined with this wonderful tool, it allows one to improve one’s entry point, as one can wait for the technical indicators to validate the sentiment readings emanating from the masses.
[Market Myths and Investing] (https://tacticalinvestor.com/stock-market-crash-myths-and-realities-tactical-investor/)
