Navigation Links
Watch Scary Movie, Sell Your Stocks?

THURSDAY, Nov. 10 (HealthDay News) -- Watching a scary movie can frighten you into selling your stocks too soon, a new study suggests.

The researchers explained that this is due to something called "social projection," in which people's own current feelings and inclinations heavily influence their assessment of others' state of mind and preferences.

This means that an investor who is scared assumes that other investors are also scared and that their fears will drive stock prices lower, prompting the investor to sell early, said study co-author Eduardo Andrade, an associate professor in the business school at the University of California, Berkeley.

"If I'm scared, I tend to project that you are scared," he said in a university news release. "If I feel like selling, I project that you are also going to sell, and that pushes me to sell earlier rather than later in anticipation of a drop in stock value."

In this study, the researchers examined whether emotions completely unrelated to the stock market could influence investor behavior. They had one group of volunteers watch horror movies while another group watched documentaries about Benjamin Franklin and Vincent Van Gogh.

After watching the movies, the volunteers participated in a stock market simulation experiment. Those who watched the horror movies were more likely to sell early than those who watched the documentaries, the investigators found.

But fear triggered early selling only when participants were told that the value of the stock was affected by other people, not when they were told the stock value was randomly determined by a computer, where social projection was not a factor.

The findings suggest that being able to control fear is beneficial for investors.

"Generally speaking, those who made more money were those who decided to stay longer in the simulation game," Andrade said.

The study is published in the November issue of the Journal of Marketing Research.

More information

The U.S. National Library of Medicine has more about mental health.

-- Robert Preidt

SOURCE: University of California, Berkeley, news release, Nov. 7, 2011

Copyright©2010 ScoutNews,LLC.
All rights reserved  

Related medicine news :

1. Weight Watchers Produces Bigger Losers Than Standard Weight-Loss Care
2. Watching how cancer patients interact online could help clinicians provide better services
3. When Someone Is Watching, Youre Less Inclined to Do Bad Things
4. Simply Watching a CPR Video Might Save Lives
5. Watchful waiting no longer recommended for some high-risk Barretts esophagus patients
6. Watching TV coverage of terror makes viewers feel threatened
7. Giffords Opens Eyes. Like Watching a Miracle, Friends Say
8. Watch out for that boom
9. Watching R-rated Movies Ups Odds of Teens Smoking
10. Watchful waiting has a new set of eyes
11. New iPhone app, MedWatcher, to support real-time drug safety surveillance
Post Your Comments:
Related Image:
Watch Scary Movie, Sell Your Stocks?
(Date:6/26/2016)... Carolina (PRWEB) , ... June 26, 2016 , ... ... of a new product that was developed to enhance the health of felines. The ... centuries. , The two main herbs in the PawPaws Cat Kidney Support ...
(Date:6/25/2016)... Miami, FL (PRWEB) , ... June 25, 2016 , ... The temporary closing of Bruton ... Plant City Observer , brings up a new, often overlooked aspect of head lice: ... The closing for fumigation is not a common occurrence, but a necessary one in the ...
(Date:6/25/2016)... ... ... Friday, June 10, Van Mitchell, Secretary of the Maryland Department of Health and Mental ... exemplary accomplishments in worksite health promotion. , The Wellness at Work Awards took place ... BWI Marriott in Linthicum Heights. iHire was one of 42 businesses to receive an ...
(Date:6/24/2016)... ... June 24, 2016 , ... Marcy was in a crisis. Her son James, eight, was ... his family verbally and physically. , “When something upset him, he couldn’t control his emotions,” ... He would throw rocks at my other children and say he was going to kill ...
(Date:6/24/2016)... NY (PRWEB) , ... June 24, 2016 , ... Topical BioMedics, Inc, makers of Topricin ... companies that call for a minimum wage raise to $12 an hour by 2020 and ... This will restore the lost value of the minimum wage, assure the wage floor does ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... -- According to a new market research ... Safety Pen Needles), Needle Length (4mm, 5mm, 6mm, 8mm, ... Purchase (Retail, Non-Retail) - Trends & Global Forecasts to ... for the forecast period of 2016 to 2021. This ... 2021 from USD 1.65 Billion in 2016, growing at ...
(Date:6/24/2016)... 24, 2016  Arkis BioSciences, a leading innovator ... more durable cerebrospinal fluid treatments, today announced it ... funding is led by Innova Memphis, followed by ... private investors.  Arkis, new financing will accelerate the ... market release of its in-licensed Endexo® technology. ...
(Date:6/23/2016)... Any dentist who has made an implant supported ... Many of them do not even offer this as a ... laboratory costs involved. And those who ARE able to offer ... high cost that the majority of today,s patients would not ... Zadeh , founder of Dental Evolutions Inc. and inventor of ...
Breaking Medicine Technology: