But it plays
on fear and greed.
But what we see as price action is simply the result of masses of people acting on basic psychology based
on fear and greed.
Not exact matches
We don't know whether officials who lather slavish praise
on Xi actually believe anything of what they say or are acting out purely out of
fear and greed.
On greed and fear: «We simply attempt to be fearful when others are greedy
and to be greedy only when others are fearful.»
«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.
This shows how the cycle of
fear and greed can play tricks
on investors over time.
His sessions are always full because he plays
on investors» two greatest emotions,
fear and greed.
Over the past two years, the market has displayed equal parts
greed (when it comes to Disney's booming movie business)
and fear (over cord - cutters putting pressure
on ESPN's business model).
These performance spreads are driven by valuations, expectations,
and often simply
greed and fear being played out
on an industry level.
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.
There is a constant tug of war going
on inside our brains between
fear and greed depending
on the market environment.
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.
It helps me keep my reins tight
on greed and fear (to which it is so easy to fall prey to) so that i can take good care of my money.
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.
«I believe that uncontrolled basic emotions are the true
and deadly enemy of the speculator; that hope,
fear,
and greed are always present, sitting
on the edge of the psyche, waiting
on the sidelines, waiting to jump into the action, plow into the game.»
This bias motivates people based
on two powerful emotions,
fear and greed.
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.
Realize that there is still plenty
on earth to feed, clothe
and house everyone,
and it is only
fear of not having enough,
and greed based
on that
fear, that keeps us from sharing it properly.
Yoga does not look
on greed, violence, sloth, excess, pride, lust,
and fear as ineradicable forms for original sin that exist to wreck our happiness — or indeed
on which to found our happiness.
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.
His ideas were marked by a mechanistic materialist foundation, a characterization of human nature based
on greed and fear of death,
and support for an absolute monarchical form of government.
Regret is the feeling that traders often feel after a losing trade or a missed trading opportunity or perhaps after not making as much money as they hoped they would
on a trade... possibly due to
greed and fear, as we discussed above.
Too often, the books pry
on your
fear,
greed,
and wallet.
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 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.
When
greed dominates investor thinking, investors focus
on profits they can make,
and they downplay their
fear of loss.
In my one
on one trading sessions with traders, two recurring themes become evident -
FEAR and GREED.
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
I am not going to cover all of the inherent headwinds faced by mutual funds
and the managers such as cash limitations, style limitations, retail
fear led redemptions or retail
greed led share purchases, egos, bonuses tied to indexes (Active Share), consultants trying to earn their keep focusing
on quarterly results, unnecessarily high fees, etc..
This is also known as «buying
on greed»
and «selling
on fear ``.
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.
And painful self - awareness & examination offer the best hope of avoiding the potentially devastating impact of
fear &
greed on your portfolio.
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.
Learning to actually recognize emotions like
fear &
greed in yourself,
and their potentially disastrous impact
on your investing, is the first & likely most difficult part of the battle you face.
A plan is worthless if not followed through
and when emotions like
fear, or even
greed interfere with an investment strategy, then you are better off dropping your fortune
on the roulette table in Vegas.
With a New Year upon us, it's time to ignore the noise,
and focus
on trying to conquer our
fear &
greed.
The stock market tends to overshoot
on the side of both
fear and greed,
and is rarely priced to accurately reflect current conditions.
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.
This year's a good example of that strange mixture of
fear &
greed they like to feed
on,
and engender.
It helps me keep my reins tight
on greed and fear (to which it is so easy to fall prey to) so that i can take good care of my money.
Unlike traded REITs, where value is tied to the price at which shares trade
on an exchange
and is often influenced by emotions (such as
fear and greed) that drive public markets, shareholders of NTRs see value equal to the cost of the asset at the time of purchase.