The Emotions vs. Sentiments

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The Emotions vs. Sentiments


Events in life and the day-to-day trigger human emotions, and when it comes to investing in the markets, emotions can be your best friend or your worst enemy. What's important to note here is that emotions are one thing, and sentiments are another, and they are both very different in nature. First, let's look at the distinct characteristics of emotions and sentiments.

The emotions we feel in in our brains are often reflected into immediate actions, while sentiments are emotions that have firmed up over time into opinions and attitudes. A sentiment is something that typically happens in the future.

Since emotions are an immediate reaction, it may be contrary to talk about them, or lean on them for decision making when considering the distant future. Think about the last time you were angry or sad, those emotions were fleeting and likely didn't last. That isn't to say your future sentiments won't include elements of those emotions.

When considering the stock market, there is always the chance of the "shoot first and ask questions later" cliche, especially when we get emotional over a hot stock or think we're going to miss out on making loads of cash. But as we know, most stocks are traded on the future prospects of the company, so one needs to understand the prospect of the company in the future and the inventing community's sentiment towards the stock, not necessarily their own emotions or how they feel personally in the moment.

We love to see sunny weather over rainy days. Therefore, I have concluded my research into Bullish sentiments and events as the sunny side of the equation, while Bearish sentiments and events are displayed as the rainy side of the future. The summary of the weather conditions and the outlook play out in the Lucid-Trend methodology, so you can see at a glance the true market sentiments.

Let's briefly talk about the failure, because when talking about the future, even the weather forecaster gives you chance of event taking place by means of probability. So does our system! In Lucid-Trend, we highlight the percentage times the weather condition can be formed as an emotional act or a sentimental act ,

Condition Outlook Emotions Sentiment
New Sun - Accidental Bullish Break Out 70% 30%
Emerging Sun - Break Out 35% 65%
Sun - Bull Run 20% 80%
Emerging Clouds - Bull Pull back 50% 50%
Rainbow - Bear Pops 50% 50%
Storm Clouds - Break Down 35% 65%
Rain Clouds - Bear Run 20% 80%
Twister - Accidental Bearish Break Down 70% 30%
Written by: Raj Patel37387

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Quote File Last updated : 04/19/2024 @ 15:54, EOD data will be updated today after 18:00
System Status14 : System updated on 04/19/2024, at 19:53

The Emotions vs. Sentiments

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