Markets work on:
- Facts - May or may not be known to the wider public but certainly is known to some set and that's where the movement starts. Sometimes facts are created also to move the market. Facts could be an insight of someone about future events.
- Expectation - Expectations are about the possibility of something happening. It may or may not happen and which might trigger a knee jerk reaction. Expectations are build over time. Usually things happening as per expectations are factored in but not happening as per expectation can set chain reactions.
- Fads - The world acts like a big sheep flock. Tulip syndrome is a classical example of this. People has herd mentality, because it gives comfort to be in the crowd.
- Emotional makeup - We are all wired biologically. Each one of us to act and behave in certain way and to react in certain way. And we all have be trained to be socially acceptable and for that to conform to what all are doing.
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