Chapter 3: Group Formation (Me + Them = Us)
What we will cover in this chapter
- The market is a mob. All mobs are psychological groups and have common characteristics. In this chapter we will look at the psychological conditioning that must occur for a group to form.
- Fellow feeling – the members have something in common and the group coalesces around this idea.
- Segregation – the ‘you are either with us or against us’ response.
- Responsibility – shared responsibility diminishes personal culpability for our actions.
- Heightened emotional state – we attend sports and music events because they produce a greater sense of occasion and more intense atmosphere than simply sitting at home. When we initiate investment positions there is no ...