1.9 - Psychology & the Principle of Markets Discounting Everything

The general idea is that the stock market represents all available information, including:

Some people play the strategy of buy the roumor, sell the news.

Crypto is great for this, think elon going on SNL, a project releasing a hyped piece of news.

Emotion states of the market

At the top (greed)	At the bottom (fear)
Everyone thinks the bull market will last forever (super cycle!!! !1 11 one one !!11) Anything bearish is written off, ignored or ridiculed Investors RUSH to buy in anticipation of higher prices - leading to overvaluation of the asset Bad news does nothing to the price	Eveyone hates the asset (and everyone else) General pessimism / anxiety / denial / panic No one bullish (retail) (Ironically) investors worry about loosing more money, more then what they've already lost Can lead to panic selling and furthur downturns Good news does nothing to the price

Big money loves what you hate - and hate what you love (Use sentiment a point of confluence)

Markets can go much higher and lower then you expect (the market can stay irrational longer then you can stay solvent)
Following the herd can lead to the slaughter
Markets have a tendency to over and under react to news