Greed And Fear
Posted by HanaDaddy | Posted in Investment Tips and Ideas | Posted on 30/09/2009
Tags: investing, Stock Investing, stock market, Stock Trading, stocks, trading
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Greed and fear are the main players in the stock market. These are the two emotions
driving force behind almost all market participants – institutional mangers, stockbrokers,
Investors, traders and yourself.
You might say to yourself that greed and fear can never get in my way of trading,
but believe it or not they will be. It is not something to be ashamed of. It ’something that is
I have to admit to, come face to face with, If I could become a trader or a stock
investor.
What greed and fear of appearing like the stock market trading arena?
You have been watching a particular material for some time now. It has set up perfectly, so as to pull the trigger. You bought the perfect price and now is moving higher, as was thought.
Now greed steps up to the plate and says to you, this will be a rocket ship. So you buy more shares. Or your stock moves a few points and go over the price that you decided to leave. Greed is said that this child is higher tomorrow so that they hang up.
When stocks make strong moves upward cumulative greed of all market participants joined the movement.
Fall in stock prices generally rise faster, and when this happens, fear now steps up to the plate.
We see the example above, if your stock has gone through your exit and the price to be held on because greed is at your side. The next morning the stock price gaps down. Their sale is heavy throughout the morning. Greed is telling you to hang in the price we come back. The price continues to fall, now you get a knot in your gut, and your knuckles are turning white. Fear is now by your side, but now it is late, your nice profit has turned into a loss.
Everyone goes to this until you have learned the ugly faces of greed and fear. Master and you are on your way to becoming a successful trader of the stock.
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