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Markets Driven by Greed and Fear

Markets Driven by Greed and Fear
"""Fear and Greed.

Tens of Millions of dollars have been made and lost based on these 2 emotions alone. In trading, in business, and in relationships. So why do so many educational courses, stock trading books, and online courses avoid this topic altogether? Fear and greed refer to intrinsic emotional states, and both play a bigger role in determining human success or failure than any other emotion we experience.

Perhaps they are not avoiding the subject of emotions, but rather confronting it head-on by imparting particular techniques and skill sets to their readers.

Knowing that emotions can cause some degree of pleasure or discomfort as well as their connections to mood, frame of mind, desires, passions, and a long list of other factors, how can we as individuals build the necessary skill set to deal with these emotions in life, business, and trading?

In my opinion, poor decision-making has nothing to do with emotions and everything to do with laziness and lack of planning. Charles Darwin argued that emotions actually served a purpose for humans, and rightfully so. If our emotions have been evolving for over 2 million years, shouldn't we be using these amazing skills to our advantage rather than placing blame on them for poor decision-making?

From One of the Greats, a Lesson!

One of the most successful investors of our time, Warren Buffett stuck to his strategy and made significant profits, demonstrating to us just how crucial and advantageous it is to follow a plan. When deciding whether or not to invest in a company themselves, Buffett and his partners follow a few simple guidelines, one of which involves trying to determine the company's longevity.

When stocks experience significant losses over an extended period of time, the market as a whole may grow more fearful of suffering further losses. However, being overly fearful can be a grave mistake, as it is precisely at this point that successful investors and traders alike make their move, and this is where the real money is made.

Investors swiftly switch from one """"safe"""" investment to another, turning it into a perpetual game of cat and mouse, much as greed drove the recent cryptocurrency bubble or fear dominated the headlines on potential trade war results.

Should retail investors be overrun by fear of a major correction?. Granted, losing a significant portion of your retirement portfolio's worth is a tough pill to swallow, but even harder to digest is the possibility of missing out on t.

A major contributor to putting out the greed flame in my own trading and daily decision-making has been having a clear grasp of my own personal goals, an understanding of my success, and compiling a list of my OWN wants and requirements.

I've also included a link to a list of ""Must Read"" books that have helped me control my emotions when making decisions. I'll update this list as necessary.

It is far too simple these days to let outside influences effect our happiness and success because social media constantly bombards us with the success of others. One strategy I have found to be beneficial is to be mindful about how I judge success, riches, ambitions, and most importantly happiness."""
 

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"Markets Driven by Greed and Fear" was written by Mary under the Business category. It has been read 43 times and generated 0 comments. The article was created on and updated on 16 November 2022.
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