Vicky รีทวีตแล้ว
I'm constantly fascinated by the flaws of the human mind. The vast majority of people can be easily manipulated into doing the stupidest things if it is repeated enough times. Or if everyone else is doing it. I literally think most people would jump off a bridge if everyone else was jumping.
People quickly complied with the mask requirement to enter a restaurant but thought it was OK to take it off once they sat down. They canceled Dr. Zeus and Aunt Jemima, tore down statues of our founding fathers, and followed one way signs in the aisles of grocery stores. Lunacy.
But the same applies to investing. Insanity isn't just reserved for pandemics, traders can fall victim to crazy fads, like paying more for a tulip bulb than the cost of an average house.
They also succumb to recency bias which causes them to buy at tops and sell at bottoms. The exact opposite of what you should do to make money.
The recency bias after the 8 week decline into an intermediate cycle low has convinced most people that price for metals can now only go lower. All rallies are seen as bull traps that will just roll over and continue lower. It's always "one more leg down" with these people.
But in a bull market you have to give rallies the benefit of the doubt because the bull eventually makes new highs. As I've said before: Any long position will be a winning trade in a bull market.
At the recent lows the bullish percent dropped to 3. In a bull market this is a buy signal. It means the correction has done its job and washed out the previous bullish sentiment and the next leg up can begin. This is one of those tools that has a nearly flawless record of marking a bottom (especially when oversold to this degree). Yet many (if not most) traders will still ignore it and continue to look for lower prices, unable to turn off their recency bias.
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