Fear and Greed? Or only Fear?

Discussion in 'Psychology' started by Thunderdog, Apr 30, 2007.

  1. The reference to the markets being driven by fear and greed seems to be a truism as old as the markets themselves. However, is it possible that, as far as negative driving emotions go in the markets, that there is only fear? That greed is just a scared sheep in wolf's clothing?

    Fear is evident in the trader who cannot pull the trigger, does not let a trade move to fruition or is shaken out of a trade before he originally intended to exit. But what about the "greedy" trader? Is it possible that his actions are motivated by a fear of lack, a fear of missing out, and a fear of admitting a mistake?

    I don't think that the argument is necessarily just semantic, in much the same way that complexes of superiority and inferiority seem too have the same basis or origin.

    Any thoughts?

  2. You have nailed it Thunderdog.

    There are only two states for a Trader.
    Either your actions are dominated by fear or you are beyond fear.
  3. Where does taking a trade out of boredom come from?

    Fear or Greed? (or lack of discipline or... just plain stupidity)...:p