Psychology of the Stock Market

G. C. Selden's Psychology of the Stock Market reveals a marketplace ruled as much by emotion as by arithmetic. Prices rise and fall not simply on facts, but on hope, fear, anticipation, and the changing psychology of crowds, especially the shifting moods of those who are long or short. Selden traces the familiar speculative cycle from quiet accumulation to public enthusiasm, from shallow reactions and forced short covering to the tense top where large holders distribute stock and the market seems effortless until it suddenly isn't. He also explains how declines gather speed, how bargain hunters, stop-loss orders, and wavering bulls shape the fall, and why market opinion is measured by money rather than by numbers of people. A recurring theme is "inverted reasoning": the habit of reading news backward, assuming good news is a trap and bad news a signal for accumulation. Selden warns against the vague scapegoat of "They," urging traders to identify real forces, understand discounting, and avoid forcing every move into a hidden scheme. His practical message is disciplined, skeptical, and deeply attuned to crowd behavior. This edition has been fully restored with modern typesetting, custom cover design.