Reddit reviews Rumor, Fear and the Madness of Crowds

I have seen numerous cases in shares where TA just totally fails when there is a change of sentiment and a re-rate. I have seen shares overbought for weeks while they find their new value point and wave three, forget about it.

You can throw all that stuff out the window if there is a genuine change in value not reflected in the asset price (eg we found a gold mine announcement, in share context).

Sustained FOMO can do the same thing - or excessive fear due to, say, security issues raised by hacking, think Mt Gox.

Irrational exuberance can go on way longer than is sensible, and evaporate in a flash - the classic text I am told was one of the standard ones they used to give junior brokers in the days before the internet was "Rumor, Fear and the Madness of Crowds" by J.P. Chaplin.

Link: https://www.amazon.com/Rumor-Fear-Madness-Crowds-Chaplin/dp/0486795454