How to Overcome FEAR and GREED?
It’s not bad having FEAR & GREED. FEAR loses its control whenever trade goes wrong so how to overcome it? it’s not much difficult just use assumption what in-case if the same trade goes profit, what you will do? Either will close the trade or wait for sometime aggregate more profit just work out the same formula when it loses what can do much better!
” Be Fearful when others are Greedy,
Be Greedy when others are Fearful ”
GREED does need to work in a different way? not at all, GREED comes when a trader in more profit should I wait for more or shall I execute more trades? think about what you will do if the same trade goes in negative.
Generally, no one can deny that when it comes to humans and money, fear and greed can be powerful motives but how do we use in trading its more important.
Fear is a response to the threat. Greed is a response to opportunity.
Fear leads to avoiding. Greed leads to attraction.
According to Warren Buffet made a very pertinent comment when he said ‘Be fearful when people are greedy, and greedy when they are fearful’. When people are greedy, bubbles happen. When they are fearful, they sell at low prices. Understanding this can lead to a wiser investment strategy.