Tuesday, December 14, 2010

Socionomics

Socionomics - Patterns in markets and nature

A great introductory video to this concept. While I generally don't agree with the premise that markets and nature follow the same underlying pattern, I do believe strongly in the concept of herding. The study of market psychology can give investors the edge in catching market reversals that take the majority by surprise. Below is the elliot wave principle or pattern for those of you who don't have time for the full video.