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<p>[QUOTE=&quot;Cloudsweeper99, post: 1269252, member: 3011&quot;]On the positive side, sentiment is what makes many investment techniques work.&nbsp; Value investing works because investors become overly pessimistic [i.e., panic] over some current condition in the markets and drive the price of an investment below intrinsic value where it can be profitably acquired.&nbsp; Technical analysis [at least the trend following techniques with which I am most familiar] works because investors tend to move in herds and if an investment has been moving up, and is moving up, there is a good chance it will continue moving up -- at least for awhile.&nbsp; Charts help identify the prices where the probability of gain seems to outweigh the probability of loss.</p><p><br /></p><p>So sentiment can be a valuable tool if you have the correct mentality and confidence enough in your method to apply it when it isn&#039;t always comfortable to do so.[/QUOTE]</p><p><br /></p>

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