Stock Trading Psychology: Greed and Fear

Stock Trading – Greed (greed) and fear (fear) is a psychological factor in stock trading that plays an important role. These two emotions are the driving force behind almost all market participants: investment managers, stockbrokers / brokers, investors, traders and yourself.

You may be telling yourself that greed and fear will never hinder my stock trading, but believe it or not, this aspect of stock trading psychology will affect your stock trading.

It is not something to be ashamed of. It is something you have to admit, deal with it well, if you want to be a successful stock trader or a successful investor.

How is greed (greed) and fear (fear) in the stock market arena?

You’ve been looking at some titles for a while now. It’s set up perfectly, so pull the trigger. You bought it at the perfect price and now it’s moving as high as you thought.

Now greed is slowly starting to come forward and tell you this is going to be a spaceship. So you buy other shares. Or your stock moves a few points and exceeds the price you have decided to exit. Greed is telling you this baby is going to get taller tomorrow, so hold on.

When the stock makes a strong move due to the greed of all market participants, the cumulative joins the move.

Stock prices usually go down faster when they go up, and when that happens fear now makes itself felt.

Let’s take a look at the example above, when your stock crosses the exit price and hold on because greed is on your side. The next morning the stock price fell. They sell a lot all morning. Greed tells you to stay there waiting for the price to come back.

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Prices continue to fall, now fear begins to approach. Fear is now on your side, but now it’s too late, your initially very good gains have turned into losses.

Everyone goes through this until they master the ugly face of stock trading psychology which is greed and fear. By mastering these two aspects, you are well on your way to becoming a successful stock trader.

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Stock Trading Psychology: Greed and Fear

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