Greed and Fear.
Two emotions that play a bigger role in people’s success or failure than any other emotion we experience. Both fear and greed are related to the inner emotional state. Tens of millions of dollars have been gained and lost on the basis of these two feelings alone. In trade, work and relationships. So why do so many educational courses, stock trading books and online courses avoid this topic together?
Maybe they don’t shy away from the topic of emotions, maybe they’re actually dealing with the emotional side of the trade by teaching their readers certain techniques and skills!
It is known that emotions create a certain pleasure or dissatisfaction. It is also known that emotions are intertwined with mood, frame of mind, desires and passions. The list goes on … So how do we, as individuals, develop the ability to manage these emotions in business and in life?
Charles Darwin claimed that emotions actually serve a purpose for human beings, and rightly so, if our emotions have been evolving for more than 2 million years. Should we not use these amazing abilities to our advantage, or should we blame them for making the wrong decision? I believe that making a bad decision has nothing to do with emotions, and it’s all about laziness and lack of planning.
Lessons from One of the Adults!
Not to mention Warren Buffett’s strategy, I would have served my readers badly. He is one of the most successful investors of our time. Warren Buffett remained true to his strategy and made huge profits. Warren Buffett showed us how important and rewarding it is to stick to a plan. When deciding whether or not to invest in a company, Buffett and his partners follow a few simple rules, one of which is to try to determine the longevity of the company.
As the market is filled with greed, the same thing can happen with fear. When stocks suffer large losses over a period of time, the overall market may be more afraid of further losses. But too much fear can be a big mistake. This is when successful investors and traders take their action. This is where the real money is made.
Just as greed or fear dominate the headlines about the consequences of a potential trade war in the recent cryptocurrency boom, investors are rapidly moving from one “safe” investment to another. It becomes a constant game of cat and mouse.
These floods of money on the stock exchange show that many technical indicators have been completely ignored, indicating that an ongoing adjustment is inevitable. Retail Investors always seem overjoyed by the flood of HIGH-reading headlines. Should retail investors be turned upside down for fear of a big adjustment? It is true that losing a large portion of the value of your retirement portfolio is a difficult pill to swallow, but it is likely that the more difficult to digest market will miss out on the huge returns it currently offers to investors of all levels of experience.
Rather than trying to understand my own goals, my own success, and the dreams of others and trying to reach them, creating a list of my own desires and needs has been a big factor in putting out the fire of greed in me. trade and day-to-day decision-making.
I also added a Linked Books link, which is useful on my journey to dominate my emotions when making decisions. I will update it as I see fit.
One of the ways I find it useful is to be careful when I measure success, wealth, goals, and most importantly, happiness. These days, it is very easy to allow outside influences to affect our happiness and success. Social media blows us up every day with the success of others.