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 VII. The Psychology of Scale Orders, 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: The observer of market conditions soon comes to know that there are two general classes of minds whose operations are reflected in prices. These classes might be named the “impulsive” and the “phlegmatic.”
Readers studying financial history, investment education, and the chapter’s specific subject—scale orders, impulsive operator, phlegmatic investor—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 scale orders, impulsive operator, phlegmatic investor may differ sharply from modern markets.