To understand the economic, we must first understand the psychology & rationality of human. After all, human are the players and main factor of a moving economic.

Many professionals especially those in relevant areas are trying to build a science model of economics and finance. With these model, we can easily come out with a hypothesis base on the model which makes market prediction as easy as snapping ur finger.

Economists are like scientists plying their science and math in economics, especially in the Stock or futures market. But more often they phailed, because the main factor is always human psychology. Psychology plays a large role in economics especially the stock market. Look at how Technical analysis study human psychology. I personally earn quite a sum from the stock market by studying human psychology.

I'm no expert in economics, but I strongly believe it's all about human greed and fear.

This post has been edited by chezzball: Jun 20 2009, 03:54 PM

I think understanding Sociology would also contribute to increase one's knowledge on Economics. The social sciences and humanities (Economics, Psychology, Sociology, Politics, Philosophy etc. ) are usually interconnected.

For example, Capitalism and Socialism are topics that would be found in both subjects (Economics and Sociology). The justification of these ideas would be attributed to Philosophy and Ethics. These principles can be applied in Politics.

Hi there!

What yu mentioned is Altruism and Behavioural Economics. It is a branch of Economics that seeks the understanding of motivations and reasonings behind an individual's decision. We have known for certain that Economics are crossing boundaries and it touches in almost every aspect of studies. It is a wide spectrum of discussion matter involved.

Would appreciate if Thread Starter can narrow down the scope of discussion. Joey~~~

p.s: Economics = Psychology? YES. DEFINITELY. It can stem to ECONOMICS =SOCIOLOGY too.

pardon me if i'm wrong here... but to me i think psychology = sociology...at least in economics..

some example on human psychology.
when bad news come out, people has fear and they will not go out and buy stuff... and will not make any investment. so demand goes down. while shop owners see demand down, they worry their business cannot tahan so they lower their price down. while those ppl who has greed will say since the stuff so cheap now... i go borong a lot la.. when economy better i sell out all again at higher price. just some example of behavioral economics rite.. which palys major part in economics IMHO.

This post has been edited by chezzball: Jun 22 2009, 02:48 PM

I think it's time to be more specific about what the '=' means. In my opinion, although sociology and psychology are quite similar, they have quite a number of differences, even within economic topics.

The difference is in the scope of study. One deals with the intrapersonal relation and the other deals with interpersonal relations. A lot of things you have described there is more interpersonal, so it's more sociology.

i didnt understand a shit about economics until i watched this documentary

http://www.zeitgeistmovie.com/

What not sociology but the practice of psychology.....

it is like applied physic is to theoretical physic

well corruption is also part of economics...

But you see, economy IS the result of studying human behaviour.

What are you saying is not sociology?

the understanding of why corruption happens and why some parties accept it.

I'm self-studying Psychology as i'm doing other program right now.
I rmb that the first introduction to Psychology is that its a study of scientific behaviour of human, which eventually explains to us why each of us will have such response to money, behaviour, attitude etc.
So, eventually, its related.
That's in my opinion. Do correct me if i'm wrong

I kinda agree with what you said.
Human psychology does play an important role in Economics especially the stock market.
When the stock market is down and bearish, people should be holding on to their stocks coz selling them won't net them any profit.
But what they do is they sell their stocks because everyone is doing the same ( psychology factor ).
This causes the stock market to stoop even lower.

ya both of u guys is correct.

I have earn more than few K's in stock market recently... i use anti-psychology on myself.... well it seems complicated but i somehow manage to 'feel' how other feel and use it while i trade the stocks... but still risky though.. i had some losses as well but overall.. profit !

Would that explain why stock prices shoot up every time a country's social stability comes under threat?

On January 11, 2010 KLCI swung up to almost 1300 points. On Feb 10, 2010 KLCI swung up to about 1250. I can't remember but there's another date 2 months ago when it similarly swung up.

If you googled up these dates, they are a day after certain "black" events happened in Malaysia that could have caused major social unrest. There was uproar and public discontent and yet instead of dipping, the stock market shot up the very next day.

I'm still trying to figure out why.

I am wondering if talking about stocks and futures would be out of topic here? What is your say, TS?

Economic is the study of market behaviour. Since it is studying behaviour, it will employ every known method from all behavioural sciences to acheive it end.

Economics = Phychology ? NO

It borrows from phychology, sociology, humanities ...

Faceless, then perhaps you should have asked the TS to remove all references to the stock market in the OP?

Okay Beastboy, you made your point.

I will answer your this question with two words - Money Politics.

This post has been edited by faceless: Jun 2 2010, 05:52 PM

reverse psychology by the big player

There so many counter out there. So they all decided to do reverse phychology during social unrest? Ever wonder if it could only be one master mind. Thus comming back to MONEY POLITICS.