1. Heading the list of the small public trader's market behaviourisms must be his insistence on occupying a long position. The small public trader will only rarerly, if ever, sell a contract short. When the public feels that prices are headed lower, they merely stand aside, waiting until they think they have an opportunity to pick bottom and establish a long position that will permit them to profit from rising prices.
This penchant for always being long the market is impossible to explain in terms of either economic theory or price behaviour.
The small public trader is not much moved by either theory ( stocks fluctate on either side equally) or pragmatic experience. ( Short -seller realizes his profits quickly than long ). He is psychologically and irretrievably set up to be bull. You can nearly always count on his being long if he is in the market at all. And if he cannot be long, he will probably be on the sidelines.
2. The next most notable characteristic of the small public trader is his impatience with a winning position and his tenacity when things are going against him. He thinks he can only afford to make a profit. he never considers the possibility of taking a loss.
Public trader is also called as WEAK HANDS..
Strong hand - is the one, who is willing to letgo the possibility of making a quick million for the privilege of not having to contemplate an equally quick bankruptcy.. they pursue the same purposefulness observed on the part of the large speculators and commercial interests.
----L Dee belveal
We’re*all*quite*accustomed*to*the*model*where*we*purchase*something*first*and*sell*it*later.*Certainly this*is*the*case*for*most*of*the*major*investments*we*make*in*life,*including*houses,*cars,*artwork,precious*metals,*etc.
--- Laurence conners
Also majority of the calls given in traderji, tv programs, facebook, infact in facebook during market going the activity is too much.. the facebook becomes very very dull when market is falling.. All these indicates that majority is on buy side ( the public ) so I GET MY DEFINITIVE HEDGE, WHEN I DECIDE TO TAKE THE SHORT POSITION.. ALSO, ONE MORE FACT IS THAT EXCHANGE FAVOURS ME..
I will explain why exchange favours me, in commodities, when u have delivery positions, u have to squre off all your longs before 3 days of contract expiry.. where as for shorts you can hold till expiry.. Also, if there is a situation to bail out the short's or longs, exchange always prefers short candidates..
Also my when majority of brokerage houses recommends buying in this share that share etc., who is actually selling?? when we buy options ( i mean call ), when we buy futues, when we buy stocks,, there is somebody selling.. IS HE A FOOL TO SELL.. AND WANTS US TO MAKE MONEY.. No there is something.. ( i can't explain and need not have to know ).. Once i join their group I DEFINITELY CANNOT MAKE MONEY.. BUT MY ODDS OF FAILURE HAS REDUCED.. ; The everlasting goal in stock market is to reduce the failure rate..
----- My observation