Why Do Markets Trend? 3 Words: Simple Human Behavior

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Markets move in trends. We can observe trends in any financial market, in any time. The price of the metals you buy move in trends and as you well know, and industrial metals are in a downtrend since the spring of 2011.

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So why does the price of your metal trend? Is it that the starts align and that produces a trend in a commodities market?

Heck, no! Traders are the ones making prices move and behavioral finance can help explain why trends are formed. We’ll mention three human behaviors to explain it.

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