Psychology of the Stock Market. English-only reading by default; switch among English, Chinese, and Spanish, or compare languages side by side.
This chapter examines Preface, using the author’s early-twentieth-century investment framework to explain how investors were expected to judge security quality, income, risk, and market conditions. It opens from the chapter’s own discussion: This book is based upon the belief that the movements of prices on the exchanges are dependent to a very large degree on the mental attitude of the investing and trading public. It is the result of years of study and experience as fellow at Columbia University, news writer, statistician, on the editorial staff of The Magazine of Wall Street, etc.
Readers studying financial history, investment education, and the chapter’s specific subject—mental attitude, speculative cycle, inverted reasoning—will get the most from this section. It is not suitable as a modern trading or investment checklist.
Read this chapter as historical investment education. The market rules, disclosure practices, securities, commissions, interest-rate conditions, and investor protections around mental attitude, speculative cycle, inverted reasoning may differ sharply from modern markets.