Sentences with phrase «fear and greed rule»

Fear and greed rule.

Not exact matches

People are going broke, losing their jobs, and fear more than greed rules the news and tries to rule thoughts.

You can be a successful investor by being disciplined in following a set of investment strategies and rules that guide you through bull and bear markets, times of greed and times of fear, and periods of high risk and periods of great opportunity.

The real test is sticking to your rules during the periods of fear and greed that occur routinely in financial markets.

Being aware of how fear and greed can impact trading, exercising discipline, and developing trading rules and plans are crucial to a trader's success.

The market right now is driven by fear and greed, and the old rules don't apply.

In my small unique book «The small stock trader» I also had more detailed overview of tens of stock trading mistakes (http://thesmallstocktrader.wordpress.com/2012/06/25/stock-day-trading-mistakessinceserrors-that-cause-90-of-stock-traders-lose-money/): • EGO (thinking you are a walking think tank, not accepting and learning from you mistakes, etc.) • Lack of passion and entering into stock trading with unrealistic expectations about the learning time and performance, without realizing that it often takes 4 - 5 years to learn how it works and that even +50 % annual performance in the long run is very good • Poor self - esteem / self - knowledge • Lack of focus • Not working ward enough and treating your stock trading as a hobby instead of a small business • Lack of knowledge and experience • Trying to imitate others instead of developing your unique stock trading philosophy that suits best to your personality • Listening to others instead of doing your own research • Lack of recordkeeping • Overanalyzing and overcomplicating things (Zen - like simplicity is the key) • Lack of flexibility to adapt to the always / quick - changing stock market • Lack of patience to learn stock trading properly, wait to enter into the positions and let the winners run (inpatience results in overtrading, which in turn results in high transaction costs) • Lack of stock trading plan that defines your goals, entry / exit points, etc. • Lack of risk management rules on stop losses, position sizing, leverage, diversification, etc. • Lack of discipline to stick to your stock trading plan and risk management rules • Getting emotional (fear, greed, hope, revenge, regret, bragging, getting overconfident after big wins, sheep - like crowd - following behavior, etc.) • Not knowing and understanding the competition • Not knowing the catalysts that trigger stock price changes • Averaging down (adding to losers instead of adding to winners) • Putting your stock trading capital in 1 - 2 or more than 6 - 7 stocks instead of diversifying into about 5 stocks • Bottom / top fishing • Not understanding the specifics of short selling • Missing this market / industry / stock connection, the big picture, and only focusing on the specific stocks • Trying to predict the market / economy instead of just listening to it and going against the trend instead of following it

One of the hardest things to do is to actually follow these rules in real time, it will surprise you that you will not want to take an entry out of fear and will not want to take an exit out of greed.

Your trading rules are meant to keep you safe from making bad decisions in the moment due to your ego, fear, and greed.

You can be a successful investor by being disciplined in following a set of investment strategies and rules that guide you through bull and bear markets, times of greed and times of fear, and periods of high risk and periods of great opportunity.

The bigger issue however comes into play are the money management rules and even more common is our own fears & greed.

But you would still have to exercise discipline to avoid fear and greed — and thus my three example rules above.

That's just a small illustration of everything that's wrong with the financial media (& so many of its devotees): Obsessing over short - term investment horizons & performance, masking & mistaking ignorance with confidence, being ruled by fear & greed, running with the herd chasing hot new fads & stocks, and always always looking for the slick salesman, the shortcut, the sure thing...

Instead, the prospect of legislation ignites silly, romantic libertarian resistance to rule of law combined with old - fashioned greed and fear of loss of material wealth.