Saturday, June 9, 2018

JUNE 2018: Neurological Assessment of current correction

Yes....it just click my mind to write an article about these present on going correction on the neurological basis...Please note what am I going to write henceforth has no clinical support and it is just an assessment of what I have studied and  articles I read on the subject....

Jan 2018:

Wow....my Midcap and Smallcap portfolio is up by 25%...See I am very smart and I can make profit in market as and when I feel....I am feeling on top of the world...no one can defeat me....my stock calls are 100% correct....there is no chance that my decisions can go wrong about any stocks recommendations I give....and the story goes on....I am a super investor....I have conquered the stock market and now I know everything about stock market....lastly I want to start Giving Tips to everyone now....I know everything....

Yes your Neurons are firing intensely and limitless at these current situation....the euphoria you are experiencing is unmatchable by any other pleasures available in the world....Yes...you read it right...

I am talking about the feel good happy chemical dopamine....the chemical responsible for all the pleasure a human being and animals are experiencing....and these dopamine chemicals are so powerful and strong that excess requirements of these chemicals leads to addiction and eventually will lead to habits....Now you must be guessing what it has to do with Stock market and the euphoria Stage....Yes...confused....but one should never forget that we are made of biochemical cells.....and all the actions....thinking decision making is a result of chemical process going on in our brain....when we think or decide to do any action our brain ozz out chemicals and electrical current and we complete the task....
and move on to the other task and it goes on and on....second by second....
So once we start making money in trading and speculation....just before euphoric stage....we become happy and start believing in ourselves and we think we are smart....such type of feel good.... happy feeling we experience because we make continuous profit in trading and Speculation and so the nucleus accumbens starts to release dopamine chemicals.....and more profit means more dopamine feels good chemicals are released....now to make profit continuously it will develop in to Addiction and more and more you trade and speculate in stock market that hit of pleasure excitement what you get continuously develops in to Habit.... and so you trade and speculate more and more to get that shot of excitement....thrill....joy.... and so the Emotions are running very high and Trading and Speculation gives you immense pleasure which not even a short of cocaine or alcohol or cigarettes can give you....YES YOU have climb the mount Everest of Greed and Addiction....and within all these euphoria the stock market reaches the top and so now from here onwards there is only one way To go..... down.....Freefall......End of dreams to make it big in stock market....Lost the opportunity to sell when I had the chance....and we fall and enter.....

June 2018.....

Right now the Insula and Amygdala part of the human brain the Fear Brain.... of the market participants must be firing intensely...yes why not.... the midcap and Smallcap portfolios of retail investors have gone down by 25% to 35%....So today Even on hearing the name of Midcap and Smallcap i.e. in the present scenario the Amygdala will immediately become active and Neurotransmitters such as Glutamate...Cotisol...Adrenaline are released immediately and will make us to go into the freeze mode....that is the stage of taking no action and maintaining the status quo....or to take action like Fight or Flight...We are now scared and afraid and in fearful stage....and now we want to preserve our money by not investing in the stock market at least for some time... Yes am I right....or wrong....so on these part of the brain i will right the article when it has folded completely.....wait patiently and remind me from time to time if just in case I forget....Pharmaceutical Sector is in these fear stage and Insula and the Amygdala both are firing intensely and telling us to not invest in the sector and stay miles away from it....so once you experience full pain anguish fear and are afraid completely and fully and experience uncertainty and certain death by investing in pharmaceutical sector will the tide turn for good....and days will become bright from darkness and there will be sunshine all around and everywhere....and opportunities to make tons of money will appear.....

Conclusion:

Whenever there is euphoria.... collectively the nucleus accumbens  fires intensely which releases the feel good happy neurotransmitters such as Dopamine...Ephedrine... in all the market participants and the nuclues accumbens fire intensely and continously for weeks.... months....years together....And so a speculative bubble is created....
And same way in downtrend how the insula and amygdala gets collectively activated and fires continously telling us to avoaid possible danger and in stock market in the form of a LOSS and so we all together go in fear mode and missed the opportunity to buy stocks at dirt cheap valuation... Because the fear chemicals such as the Glutamate...Cortisol....Adrenaline are released continously in downtrend so our brain predicts there is danger and a possibility of a LOSS...and so we dont grab the opportunity to buy stcoks at discount and when MR MARKET is offering us Stocks at a 50% SALE value....


One who is winning is enjoying the rollercoaster ride Nuclues Accumbens.....like NBFC...even if valuation are high.....one who is losing is in constant fear...INSULA...Amygadala....Pharma....fear of investing even when valuation is low and favourable risk Reward ratio.....


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