Bruins, 1989, About the saliency of
fear and greed in social dilemma European Journal of Social Psy - chology: 155 ~ 161
Kahneman suggests that «expert» traders generally do not do better than «the market» and that stock trading algorithms work better than decisionmaking by investors influenced by their emotions of
fear and greed in random succession.
If you don't have skill, far better to buy and hold, with a moderate asset allocation to stocks, thus moderating volatility, and moderating
fear and greed in the process.
The VIX is a widely watched measure of
fear and greed in the stock market.The VIX was down by 7 % yesterday to 13.7 — Lowest in 5 years.
Not exact matches
There is a lot of
fear and greed, but that aside there is a redefining the concept of value
in the virtual world with new mechanisms for value exchange.»
«Through unprecedented access to the players involved, he re-creates all the drama
and turmoil of these turbulent days, revealing never - before - disclosed details
and recounting how, motivated as often by ego
and greed as by
fear and self - preservation, the most powerful men
and women
in finance
and politics decided the fate of the world's economy.»
The two main emotional drivers
in the stock market are
greed and fear.
«The I.P.O. market is a cycle, it's bought on hope, held
in greed and sold
in fear — we're
in the first stage,» said John E. Fitzgibbon Jr., founder of the research firm I.P.O. Scoop.
Fear and greed are probably the worst emotions to have
in connection with the purchase
and sale of stocks.»
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.
Instead, the
fear and greed psychology that dominates individual investors cause many to move
in and out of markets, often at the wrong times.
There is nothing that can stand
in the way of a combination of
GREED and FEAR.
Gold prices were said to have become a barometer of political
and economic
fears, but
in the end it was just pure
GREED that drove the price until it finally peaked
in January 1980 at $ 875 an ounce, almost on the very day that Americans were finally allowed to buy
and own Gold bullion; the day that the big surge of American buying was to drive Gold to $ 5,000.
These are codes that can be written to open
and close trades when specific conditions occur
in the market, removing human emotion from trading based on psychological factors such as
greed and fear.
We believe it was investor
greed that propelled growth stocks to such extreme heights back then; today,
fear seems to be sustaining the momentum as investors pay up for the perception of safety
and stability
in an uncertain environment.
David Hume also argued for the positive social value of commerce based on the profit motive, although he
feared unadulterated
greed and thought that
in commerce it was mixed with other motives.
Beyond that our main concern must be to see that man, whose folly drove him from the Garden of Eden, does not commit the blasphemous act of destroying, whether
in fear or
in anger or
in greed, the great
and lovely world
in which, even
in his fallen state, he has been permitted by the grace of God to live.
But
in their grasping
and rebellion,
in their independence
and greed, they instead learned
fear, anger, judgment, blame, envy,
and shame.
I am exploring what diseases might be lurking
in my head; what my memory is like at the age of 51;
and how my brain responds to matters as diverse as
fear,
greed, the movies I like,
and even the idea of God.
The people, united, will never be defeated — unless, of course, they're living
in a world governed by
fear, envy,
greed and perpetual backstabbing
in the name of personal ambition
and progress.
Indeed, director / co - writer / star Jay Chandrasekhar provides an intriguingly astute observation on the loss of innocence
and masculine silliness
in a world driven by
fear, corruption,
greed, depravity
and financial insecurity.
and nothing is quite as it first appears as he finds himself
in his old haunts of Leme
and Copacabana,
and in the all - too - familiar murky terrain of corruption, secret lives,
greed,
and fear.
Nothing is quite as it first appears as Espinosa finds himself
in his old haunts of Leme
and Copacabana,
and in the all - too - familiar murky terrain of corruption, secret lives,
greed,
and fear.
Fear can be both good
and bad
in trading, unlike
greed which is essentially always bad for a trader.
I've written extensively about how mindfulness can help us deal with unproductive emotions like worry,
fear,
and greed while implementing our investing plans
and our personal finances
in general.
Success
in trading is built on a strategy that matches your personality, time frame, risk tolerance
and more importantly the proper trading psychology of negating
fear and greed.
The real test is sticking to your rules during the periods of
fear and greed that occur routinely
in financial markets.
The
fears, dreams
and greed surrounding gold results
in speculation — driven by what people think it could be worth.
The feelings that traders get of «missing out» on trade setups, are simply born out of
greed,
fear and a «need» to be
in the market all the time.
Graham's point was that
fear,
greed,
and other emotions (the voting machine) can drive short - term market fluctuations which
in turn cause disconnects between the price
and true value of a company's shares.
Wall Street plays to the operative emotion of the day —
greed in the commodities markets
and fear in the others.
Taking dozens of trades
in a flurry will only cloud your analysis
and fuel your feelings of
fear and greed.
Meanwhile, CNNMoney's
fear and greed index, which,
in addition to factoring
in the VIX, also tallies a number of other market indicators such as market breadth, stock price strength
and the demand for safe havens, just hit its gloomiest «extreme
fear» level.
Rather, it tries to get the investor
in touch with himself, so that he can react rational
and to invest situations rather than out of
fear or
greed.
But it's not easy: Carl did it by choosing a proven investing strategy — dividend investing,
in his case —
and implementing it without a hint of
greed or
fear.
In my one on one trading sessions with traders, two recurring themes become evident -
FEAR and GREED.
In most cases, people lose money due to
greed and fear.
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
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
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
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
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
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
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
Once the trade starts working or trending
fear or
greed kicks
in and there is the urge to lock
in the short profit as a pose to letting -LSB-...]
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.
We are our biggest obstacle to making money as fast as possible
in the market; no matter how you slice it, trading failure always comes down to human errors born out of emotions like
greed,
fear and revenge.
Instead, the
fear and greed psychology that dominates individual investors cause many to move
in and out of markets, often at the wrong times.
However as we know two key emotions,
fear and greed, often come into play as well as we've seen over the course of the past two major market declines
in 2000 - 2002
and 2008 - 2009.
The advice of friends, stockbrokers, market advisors,
and the like are all likely to have a magnifying effect on the natural elements of
fear and greed that are present
in every investor.
It's Monopoly money, at best... Ironically, the less you care about money,
and profits & losses, the more abstract the notion of
fear &
greed will become — you'll become far more rational & effective
in your investment decision - making.
To get there, they gained the necessary knowledge & experience, they successfully controlled their
fear &
greed,
and they learned how to see the world around them re-configured
in a very different way.
And most importantly, reading fiction allows you to recognize the fear & greed in yourself (& others), and enables you to see & imagine the world very different
And most importantly, reading fiction allows you to recognize the
fear &
greed in yourself (& others),
and enables you to see & imagine the world very different
and enables you to see & imagine the world very differently.
But we're all too human —
and now we're addicted to this 24/7 diet of escalated corporate & market drama, so it's become easier than ever for the media to stoke
fear (
and greed)
in our hearts.