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Human Psychology in Share Market | 100% Proven Mental Tricks to Make Money & Avoid Loses - YouTube
Channel: Pushkar Raj Thakur: Business Coach
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So before I start this video I have a question
For all of you, here you see that there are
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2 lines.
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Just answer a small question, which line do
you find bigger.
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You would say, sir, is this a point to ask?
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The bottom line is bigger and it is bigger,
Your brain said, it still looks big.
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But I'll just prove this because I drew the
line for you guys just so that I can show
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you what these lines are, it's the same.
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Let me show you that their length is the same,
see this, their length was the same.
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But why did you think that the bottom line
is bigger, today you are going to learn Human
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Psychology?
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And this human psychology will be useful in
your life and also in the share market and
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you will know why people make mistakes then
this phenomenon called Mental Heuristics.
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Now, this mental heuristic is not good for
you most of the time because it means that
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your mind does not want to spend much time
processing information.
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It doesn't look once but it immediately judges,
as I said that which line is bigger than your
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mind did not draw such lines like this that
you think that such lines can also be equal
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but It just passed judgment once and by seeing
from above that bottom line is big and now
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how these people use adversely in share market
for themselves, I will tell you that when
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our mind does not want to process information.
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People don't see the financials of the company
and they didn't even see the balance sheet
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and they don't even judge the past performance
of the company, they just saw that this stock
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is looking nice and they judged once and we
pick the wrong stocks and then we face losses
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and we don't spare time for technical analysis
because for that information has to be processed
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in the mind and that is a tiring process for
the mind.
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And because you will not put mind and you
will not invest time and you are conditioned
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that is not your mistake, your mind is conditioned
that it doesn't want to give time, but you
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know that if we can make mistake then we don't
have to make that mistake and from here we
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come to the next phenomenon and which we call
sunk cost fallacy, now what does it mean,
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now I give an example to you that first, you
think for yourself that you are going somewhere
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200 km away from your home and you feel hungry
on the way and you are driving.
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Now you feel hungry and you drive and you
stop at a takeaway restaurant and example
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you stop at a McDonald's and there you order
your favorite burger and you say that make
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a meal and you put french fries in it and
also put coke and you get your meal there
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and you take your meal and you put it in the
car and you are driving and when you are driving
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then you pick the coke and you drink it and
you feel that there is no fizz in it and it
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is feeling like that it is water, there is
just sugar mixed in the water and that's it,
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you are not getting the flavor of the cock
and then you put your hand in french fries
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and you think that they are dried and they
are not crispy at all then you think that
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Burger will be fine.
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And you pick up the burger and when you pick
the burger then you think that it is feeling
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that it's just kept then you don't have that
much fun, you did not get that much taste
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and that much crispness and now what you will
do, my question is what will you do.
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You have given ₹500, you can drink coke,
and you can also eat french fries but it is
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not crispy and you have taken a burger and
that is not much good but still you can eat,
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what to do.
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Most people will not throw it, and they will
not throw that food away and they will say
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that we have ₹500 and we will eat it and
because people eat then they think that money
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has gone now and Money is drowned and what
to do now, now we will not throw it, we will
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utilize it and take one more example that
you go in a movie theatre and that is not
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your favorite movie and you sit inside with
your family and you have taken everybody tickets,
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now while watching the movie you say what
a bad movie, no story, no fun, Absolutely
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boring, what you will do, will you come in
between from there and you will say that we
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will not come and we will not come because
there is a signal in your mind that you have
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spent your money and your mind is saying
that you have spent money then even we
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took the air of AC for 3 hours, but we will
sit there and if you even abuses after that
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what a bad movie it was.
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But still, you will not leave in the middle.
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Money has sunk but still, you guys are engaged
in it and This is what happens in the stock market.
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We buy shares of the companies from which
we are getting loss but if we are getting
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loss then we bear more because i give you
an example of it and you will understand that
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your loss is happening and in the shares you
get profit you don't stop for that and you
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don't wait for profit and you get profit and
you booked profit and you sold that if it
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will fall then, we purchased share on ₹100
and it becomes of ₹120 and we got Profit
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and we booked profit because if come again
on ₹110 then we can get loss, so we booked
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profit here but when we are getting losses there
then we wait for
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the loss because we invested money, so you
wait and you don't take action in between
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that, just like you did not come out between
the movie then until the share will grow,
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it is there, but you did not think that at
the time of profit and again you are using
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this human psychology for you in a reversing
way, but if you can understand it then you
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can also use it in your favour and third phenomenon
is that loss aversion, now what is the meaning
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of loss aversion that we human being, whatever
happens, but we can't tolerate loss, and we
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have pain in loss and we get pleasure in the
profit and we get happy from Profit, but let
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me tell you that if you get 1X happiness on
profit then you have 3X pain on loss, and
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you can tell me in the comments that it happens
or not, it definitely happens.
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When there is a loss, it is very bad for the
brain that I have a loss and what do people
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do to protect against this loss, let me tell
you what people do, suppose you purchased
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a share for ₹100 and now it decreased and
it becomes ₹95, and Suppose there is a loss
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and now Suppose you purchased ₹1000 quantity
of it, then here you invested one lakh and
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it becomes ₹95000, then there is a loss
of ₹5000 and what people will say that they
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think in the mind that there is a loss of
₹5000 and we have to prevent it then we
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have more money then we again buy 1000 shares
in ₹95000, so our average will increase
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and it means that average will not be of ₹100
and it will come of 97.5, and whatever your
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average will come then it will average out.
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This means that even if the stock reaches
98, we will still make a profit.
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Now it won't, Now let's say it went from here
to 90, then if still, we have more money even
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then we purchased more than our average is
out and it comes around 95 or 96 comes, then
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even if it comes to 95 of 96 I will not book
loss, but I will come out with a profit and
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in the share, you were getting lost, you kept
on investing money in that and you kept investing
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money in that and you don't do in which you
get the profit that I purchased it on ₹100
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and it becomes of ₹120, now I will not buy
it, it has increased a lot.
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But when it is drowning, then money was constantly
spent, and this is called loss aversion.
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Now only in the share market, but you can
see these phenomenons in your daily life and
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you do it but now if you understand the principles
of human psychology, then maybe you will not
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book your loss ahead and you want to learn
a lot more about the human psychology because
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I have done my studies on this so I can teach
you more about it and if you want to learn
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then you must comment that you want to learn
more about human psychology and if you liked
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this video then like it and please share it
so that this amazing information can reach
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to more people.
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And I will see you in the next video till
the time you go self-made.
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