With recent events and the Wall Street Bets (WSB) #Reddit army, stocks like #Gamestop (#GME), #AMC, #BB, #NOK, #BBBY, #SLV, and others have been part of an epic short squeeze. This video discusses the Panic of 1901, the history of the Union Pacific Railroad Short Squeeze , and the first stock market crash on the New York Stock Exchange. Was UNP the Biggest Short Squeeze of the Last Century? It was certainly a historic short squeeze and one for the history books. Gamestop’s story is still unfolding, and it will be interesting to see how the story ends. Behavioral economics (also, behavioural economics) studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory. This is not something often studied for stock market investing; however, I think it should be. Behavioral Economics, simply, is the study of #psychology as it relates to the economic decision-making processes of individuals and institutions. Psychology is very important to stock market investing. Especially for day traders, but really for any type of investor, whether long-term investing or trading.
#shortsqueeze #stockmarkethistory #stockmarket #BehavioralEconomics