The psychology of the market is one that includes both the psychology of investing and the psychology of gambling. There are the compulsive attractions of gambling in the market. The undulating moods of the stock market, alternating between its bull phase of energy greediness and grandiosity, and the bear phase of timidity, anxiety, indecisiveness and self-doubt, reflect the manic behavior of the gambling addict.

Speculation differs from most gambling activities in that the beliefs of the participants affect the results. In certain circumstances speculators are capable of creating self-fulfilling prophecies. Success in speculation is ultimately dependent on finding someone else to buy your shares at a higher price than you paid for him or her. Every speculative bubble resembles a chain letter in that profits are provided by late entrants to the market. Everyone is attempting to anticipate the immediate intentions of his competitors. In such circumstances, paying attention to shifts in market psychology becomes essential.

市場的心態表現出投機與賭博兼而有之的兩重性。市場有難以抗拒的賭博誘惑。股市的情緒在牛市和熊市之間交替波動，牛市充滿了高漲的貪婪情緒，熊市則彌漫著膽怯、焦慮、猶豫不決和自我懷疑的情緒。股市心態的這種波動折射出賭徒的躁狂行為。投機活動與大多數賭博活動的不同之處在于，投機參與者的信念會影響投機結果。

在某些情況下，投機者能夠創造出自我實現的預言。投機的成功歸根到底取決于別人能否以比你買入時更高的價格買下你手中的股票。每個投機泡沫就好比一封連鎖信，利潤是由后來入市者提供的。每一個人都在預測競爭對手下_步的意圖。在這種情況下，對市場心理變化的關注是至關重要的。