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.
Not exact matches
«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.»
This shows
how the cycle of
fear and greed can play tricks on investors over time.
This is
how you place your stops according to the market structure
and logic, rather than from emotions like
greed or
fear.
The CNN
Fear & Greed Index monitors seven market factors, including stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and safe haven demand, by calculating how far they have veered from their averages relative to how far they normally veer, on a scale of 0 to 100, with 0 indicating fear and 100 gr
Fear &
Greed Index monitors seven market factors, including stock price momentum, stock price strength, stock price breadth, put
and call options, junk bond demand, market volatility
and safe haven demand, by calculating
how far they have veered from their averages relative to
how far they normally veer, on a scale of 0 to 100, with 0 indicating
fear and 100 gr
fear and 100
greed.
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.
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.
The future can not be predicted because it does not exist yet
and there are endless variables that will play into
how prices play out due to news, buyers
and sellers motives, along with mass
fear and greed.
This is
how you place your stops according to the market structure
and logic, rather than from emotions like
greed or
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 it
You should be starting to see
how a lot of these emotions are connected; euphoria
and quickly lead to
greed and greed can quickly lead to
fear.
We can understand
how human
greed,
fear,
and ego affect price movements
and follow along.
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.
And that's
how fear &
greed grabs hold & encourages you to play the «if... «game.
For example:
How do they perform under pressure, and how do they deal with the pernicious impact (s) of fear & gre
How do they perform under pressure,
and how do they deal with the pernicious impact (s) of fear & gre
how do they deal with the pernicious impact (s) of
fear &
greed?
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.
Your performance will mostly depend on
how long & hard you worked (more so),
how smart you were (less so), your attitude to risk & risk management,
and (most importantly)
how well you controlled your
fear &
greed.
In short, the demo account provides beginner traders with the necessary experience to help them learn
how to limit their trading losses as well as to learn
how to control their
fears and greed.
A lot of what goes into the thought processes of Charlie Munger involves
how investors let
fear or
greed get the better of them,
and cease to think rationally.
And in turn, your reaction (no matter
how you agree, or disagree), is mostly driven by
fear &
greed too... as you worry about possibly exhilarating gains & gut - wrenching losses in your portfolio.
Attendees will learn
how to take
fear and greed out of their psychology
and replace it with discipline by well thought out high probability trading.
* Contains sound investment advice
and simple principles of investing from two of the most respected individuals in the investment world * Burton G. Malkiel is the bestselling author of A Random Walk Down Wall Street
and Charles D. Ellis is the bestselling author of Winning the Loser's Game * Shows
how to deal with an investor's own worst enemies:
fear and greed
Besides introducing you to a proven Forex trading methodology
and showing you
how to improve performance by running your trading operations like a business, this book also addresses some the most important psychological aspects of trading including
greed,
fear, loss,
and isolation
and discusses what you must do to overcome such obstacles.
Investors can read everything they can lay their hands on, but most are chasing a holy grail they'll never find in books:
How to properly assess a stock in real - time — in all its original & imperfect glory,
and as its story evolves — accompanied by the usual all - too - human blood, sweat, tears,
fear &
greed.
I think poker
and trading (
and even investing) are v similar: You need to know the numbers cold, know
how to read people (/ sentiment / markets), eliminate
fear and greed and have airtight money management.
I suppose that some of that could be boiled down to
fear and greed but given
how people in the climate wars so frequently attribute motivations to
fear and greed, I'd be more circumspect.