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.

alot things are interconnect

i don't think government have so much money to mess with stock market

just take US stock market for example...US government say not ganna interfere with stock market...so how is money politics inside this

This post has been edited by dr2k3: Jun 2 2010, 05:54 PM

PNB, EPF, Tabung Haji are the bigest players in the KLSE. These bodies just need to get a directive for the PM or FM.

o u are talking about malaysia stock market....i was talking about other stock market throughout the world xD

so ya if u want to say that......malaysia stock market to me is like dead market.....most likely they r the only player around...

This post has been edited by dr2k3: Jun 2 2010, 06:00 PM

Hah, were you not quoting Beastboy on references he made to the KLCI? Therefore I assume we are talking Malaysia market.

o heh, coz other country stock market also have this occurrence...and because malaysia stock market is so "dead" never in my mind thinking of malaysia market

Im dont have much economic knowledge but im a self-learn psychology student, correct me if im wrong

Many thing IS related to playing with psychology whenever there is an issue related to human being
Economy in the society is just like war, if u can grab the king pieces then u will be the winner
In order to do that, u have to face the opponents that stopping u
To defeat opponent in an effective way according to many strategy book including art of sunzhu, we have to know their next and future movement and plan, if u know what our opponent plans ahead, we can know how to set up a plan earlier and defeat their plan
To do that, we have to understand them, through the surface
There is no rule or law to do that but using psychology to analyze their behavior and find out what they actually thinking
This is the power of psychology

Also, psychology apply in many thing
For me is most as i dont think theres anything excluded
If we able to consider things in all perspective of the chessboard, we can be the king easily

Anti informatic, you no idea what economics is about. What you described is business strategy. Economic study supply and demand or the market. Market is a place when people buy and sell (supply and demand). They look into variables for demand (taste, price ...). The same goes for supply (cost, technology ...)

Ya what u mention is mainly on business strategy, but isn't economy involve competition among each other too?
Sorry for my lack of understanding regarding economy

The word competition may confusfe you. It does not refer to studying how businesses apply strategies to compete with each other. Those are under Business Administration. It study the characteristic of a perfect competition market. They will contrast with a monopoly, monosopny, and oligopoly market.

Economics is basically studying sheep. You are studying the actions and reactions of a herd of rational sheep.

+1

All the economists I know spend more time explaining why predictions they made yesterday didn't come true today. But i envy they make $$ that way.

I don't get what u mean here, mind to explain further on these biggest players in KLSE?

what are actually the conditions for listed in KLSE? Pardon my lack of economics knowledge.

I dont know what kind of explaination you want here either. Perhaps you can answer the question how much money these bodies had in the hands. As with banks and insurance companies, these organisations must hold back some of the cash they hold and invest the rest. Where else do you think they will be allowed to invest if not in the local stock market? As to a directive from the Prime Minister or the Finance Minister, they could not choose not to follow it. If this does not answer you, then your questions had to be more specific.

If you want to list a company in the KLSE you can Pm me. (There are many agents out there who help people list their companies). I give you one of the agent's contacts.

For on the surface knowlede, a company must show that they had track records of making millions in the past years.

Again these had nothing to do with economics. It does not study the forces of supply and demand. It is just rules and guidelines determined by Bursa on listing a company.