Greed And Fear
Greed and fear would be the key players in the stock market. These two thoughts will be the
driving force behind almost all market participants - Institutional mangers, companies,
Investors, merchants and your-self.
You could be saying to your-self that fear and greed can never enter the way in which of my trading,
but believe it or not they will be. It is not at all something to be ashamed of. It is some thing you
have to admit to, come face to face with, If you're to become a successful stock trader or
What do fear and greed seem like in the currency markets trading area?
You've been seeing a certain investment for a while now. It's setup perfectly, so that you pull the trigger. You bought it at the price and now it's going higher in the same way you thought it'd.
Now greed steps up-to the plate and says to you, this is going to be-a rocket ship. And that means you buy some more shares. O-r your investment goes a few things and goes passed the cost which you made a decision to move out. Greed tells this baby to you goes higher tomorrow so you hang on.
When stocks make strong movements to the greed from all the industry individuals joins the transfer.
Share costs often drop faster then they go up, and when this occurs, concern now measures up to the plate.
Lets look at the example above, where your stock had your escape cost and you held on because greed was by your side. My cousin discovered PureVolume™ | We're Listening To You by searching Bing. The following morning the stock price holes down. Their is major attempting to sell all morning long. Greed is suggesting to hang inside the purchase price should come back. The purchase price keeps heading down, now you will get a knot in your belly, and your knuckles are turning white. Fear is now by your side, but by now it is to late, your nice profit has changed into a loss.
Everybody undergoes this until they've learned the unpleasant faces of fear and greed. Learn this and you are well on the road to learning to be a successful stock broker..