Old Money vs New Money You've probably heard of the term " old money vs new money " before and you know the gist of of it. However, in this article we'll try to explore the actual psychology behind this classic expression.  What is Old Money? When talking about expression "old money vs new money", the old money refers to accumulated wealth over a longer time period.  In some cases it can refer to someone getting rich through a lifetime of work, but more commonly it refers to money accumulated through generations within the same family. It means that someone with old money usually inherited it or received it through a trust fund that setup within the family. Recommended Read: Buying on Credit: Meaning, Benefits & Drawbacks What is New Money? New money is an term for wealth that has been recently acquired - be it through a successful startup company, high income professions, lottery winnings or even crime.  In essence, whoever earned new money most lik...

Stock Market Cycles Chart Stock Market Psychology Grasping the stock market psychology is not too hard, but many investors are unaware of its existence or thoughtlessly neglect it while planning their investment strategies.  For long it was thought that the stock market must act rationally and sooner or later correct itself. Some investors still hold onto this belief, which is known as the " efficient market hypothesis ".  However, in modern times market psychology has been prone to more in-depth research. Nobel prize-winning Daniel Kahneman was one of the first economic researchers to doubt the validity of the efficient market hypothesis. Together with the famous cognitive and mathematical psychologist Amos Tversky they challenged the notion that the markets would always make rational decisions made on relevant and publicly available information. They made the case that humans suffer from a palpable cognitive bias when it comes to financial decision-making and specifically ...

Market Cycle Psychology Market cycle psychology is an interesting phenomenon. The price trend in different markets tend to follow certain patterns (whether it's stocks, commodities, housing, or cryptocurrencies). This holds especially true in a so-called market bubble . Market cycle psychology is not an exact science but can roughly be explained by the nature of human psychology in relation to fear and euphoria, as well as collective thinking .  Fear and euphoria play an important role in investors psychology in general.  Fear of regret , for example, is a well-known concept that refers to the human mind anticipating regret and subsequently avoiding it. The infamous FOMO, also known as fear of missing out , is strongly dictated by fear of regret. Strengths and Shortfalls of Market Cycle Psychology Understanding the concept of market cycle psychology can be beneficial on a macro scale when determining in what strategic direction you want to take your investments. Knowing in wh...