As a seasoned investor, I find that the markets are really quite fascinated with trading software; you know those types of trading software which have colourful candlesticks, many sloping lines and illustration like these. And that is probably why the companies behind these software keep advertising their offerings on the newspapers in the forms of free seminars. It is a psychological effect for investors to feel excited over these trading softwares which are often touted as very accurate prediction models as people always think that there is value behind those things that they do not understand. Another psychology at work in the stock markets is speculation and follow the crowds. This is best illustrated with the chasing of penny stocks, only to find when these penny stocks head south, that the fundamentals of these penny stocks are not really good. The two examples of psychology outlined above are not good ......