What really moves stock prices? What is an irrational attitude of investors? Imagine for example the actions of the Dutch company TomTom, a pessimistic investor negative towards the evolutions of the company's sales would think that 30 would be too expensive to buy, would it be rational? We have to understand why we're in the market and Why we are buying shares. Is the sole purpose of selling more expensive? If so it would not be irrational to buy the 30 with the goal of selling 40, but if we believe that purely a company's worth 30 why buy?
Imagine that an investor opens a short position in one asset because he believes it is overvalued, you still have to endure an escalation of prices up to 50 euros, before prices begin to retreat, his attitude was rational to sell?
The answer is no, perhaps that to be rational would need to know beforehand how other investors would behave.
Given that we do not know everything about the assets in which we invest, we can think that all attitudes are irrational investment ...
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