Definition
The overall attitude or feeling that investors and traders have toward a particular security, sector, or market. It reflects the collective psychology of market participants and can indicate whether they are generally optimistic (bullish) or pessimistic (bearish). Often influenced by psychology rather than fundamental analysis, sentiment can drive short-term price movements and contribute to market cycles of greed and fear.
Example Usage
"Despite negative economic news, the market sentiment remained bullish, suggesting investors were confident about future growth prospects."
Related Terms
Bear MarketBull MarketInvestor PsychologyMarket MomentumSentiment IndicatorsContrarian Investing
Tags
Market PsychologyInvestor BehaviorTechnical AnalysisTrading
Course Module
Module 1: Introduction to Financial Markets