Do you have a question ?
If you have a question , you can probably find the answer below . If your question isn't answered in the FAQ below, you can sent your question and I will answer as good as I can. Please be patient receiving your answer.
Don't have any questions ? Continue to see My Trades.
What is mood ?
Mood is a temporary state of mind or feeling.
The word 'temporary' is crucial.
Who is Mr Market ?
Used as an allegory, Mr. Market is an imaginary investor devised by Ben Graham. Mr. Market is a hypothetical investor who is driven by panic, euphoria, and apathy on any given day, and approaches his investing as a reaction to his mood.
Modern interpretations would describe Mr. Market randomly swinging from bouts of optimism to moods of pessimism.
source : investopedia
What is the Market Mood Model ?
The Market Mood Model is designed to get a sense of Mister Market's current mood.
The © Market Mood Model distinguishes 2 moods :
Mr Market is either in a 'good mood' or Mr Market is in a 'not so good mood'.
What does 'Mr Market is in a good mood' mean ?
It is Mr Market who sets the price. When in a good mood, it is likely Mister Market names a higher price.
Mr. Market is willing to pay more on average and the price valuations are likely to expand.
What does 'Mr Market is in a not so good mood' mean ?
Sometimes Mr Market is in a 'not so good mood' according to the model. He can see nothing but trouble ahead. On these occasions, he will likely name a lower price.
How is the Market Mood Model built ?
The Market Mood Model has 3 building blocks :
1) Major news headlines
2) Leading companies
3) Mass psychology
Is the Market Mood Model useful ?
Yes and no. The Market Mood Model tries to get a sense of Mr Market's current mood. Is that useful ? It is probably more useful for a short term trader than for a buy and hold investor.
How can the Mood Model help ?
The Market Mood Model is an attempt to measure the overall stock market mood.
The biggest advantage is that it helps to stay focused.
Compare your personal opinion or bias with the outcome of the mood model.
Can I use the Market Mood Model for forecasting ?
No , the Market Mood Model is not built for forecasting. Just to keep a finger on the pulse. It is a small piece of information that adds to a bias, no more than that.
How many mood changes are there each month ?
Every month is different. Mr. Market can stay in the same mood for one day, several days or even weeks. Expect at least 5 mood changes each month.
Be aware : his mood can change at any time.
Follow up on his mood changes here.
How did you start short term trading ?
I started short term trading very modest. I learned while risking only small amounts of money. I think it is the best way to get a feel for short term stock price movement.
Is short term trading profitable ?
There is no guarantee short term trading is profitbale. I believe it can be profitable with the right attitude.