It is a well-accepted fact that the market is driven by:I. Emotions.II. Expectations.III. Habits.IV. Knowledge attitudes.
A. Only II is correct.
B. Only I, II, and III are correct.
C. Only III and IV are correct.
D. All are correct.
When a trader or analyst begins to feel discomfort or anxiety when being confronted with contradictory evidence, we say that they experiencing:
A. Regret bias.
B. Compartmentalization.Your selection is incorrect
C. Aversion bias.
D. Cognitive dissonance.
Which statement is true about positive feedback loops?
A. Positive feedback loops are usually responsible for creating spectacular market tops and bottoms.
B. Positive feedback loops are not self-sustaining and are regarded as unstable.
C. Positive feedback loops are self-promoting.
D. All of the above.
Which statement is true about contrarianism and herd behavior?I. The herd or uninformed are usually responsible for driving a trend up or down.II. Being contrarian means to buy when the under-informed public is selling and to sell when the under-informed public is buying.III. The well-informed or smart participants are usually contrarian at tops and bottoms.IV. Many contrarians are also trend followers during the trend phase.
A. Only II is correct.
B. Only I, II, and III are correct.
C. Only III and IV are correct.
D. All are correct.