6 Incredible Charts On The Psychology Of Market Bubbles

We’ve recently seen several excellent charts on investor psychology and the phenomena of market bubbles. Asset bubbles are one of the most interesting aspects of markets. A book written more than 100 years ago on the subject, Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay, remains a bestseller today. Here are some of the charts you have to see:

1.) Here’s a chart posted by @starlettis that shows investor psychology through each of the most important stages of the market:



2.) This is one of the most famous modern asset bubble charts. It was shared by @Ryknow a few weeks ago on StockTwits. It’s timeless:





3.) This must-see post is from @Gianluca_Ferrari. He compares Tesla to infamous asset bubbles like The South Sea Trading Company and the 1637 Dutch Tulip Bubble:


4.)  In this chart, @nobody99 shows a roadmap with many of the most common trading and investing follies:

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5.) In the post below, @MarketClouds compares Tesla to a classic chart from the legendary Jesse Livermore:



6.) This chart from @alphatrends shows some of the most perilous emotions when being long or short a stock:

Screen Shot 2013-11-12 at 9.22.54 PM


BONUS: Is there a bubble in using the word, “bubble”?

bubble using the word bubble



Do you have a great chart on the psychology of market bubbles? Please post it to StockTwits and then share a link in the comments below. We’ll add it to this list.



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