Understanding Investor Attitudes and Their Impact on Trading
Market sentiment, a combination of factors like price history and world events, influences price development in a market. Traders and analysts use it to predict short-term changes and contrarian investors trade against it. Bullish and bearish sentiments reflect optimistic and pessimistic outlooks, impacting buying and selling activities. Economic indicators and events shape market sentiment, requiring adaptive strategies. Contrarian investors find unique opportunities by going against prevailing sentiment. Understanding market sentiment empowers investors to navigate financial markets with confidence.