Investing And The Fear Of Regret And Greed

People tend to feel sorrow and grief after having made an error in judgement.

Investors deciding whether to sell or buy , 1000 Advance Payday Loan Should You Borrow That Much On A Payday Loan a security are typically emotionally affected by whether the security was bought or sold for more or less than the current price. , How To Choose Your New Credit Card

One theory is that investors , Secured Loans Are Popular Among Most Of The Borrowers avoid selling stocks , 12 Ways To Cut Health Care Costs that are going down, in order to avoid the fear, pain and regret of having made a bad investment. , Nasdaq Rising Wedge On the other hand, they also avoid selling , Insuring Your Overseas Home when prices , Debt And Bill Consolidation Consolidate Debts With No Loan Orcredit Check are going up, because they are very greedy and are afraid that the price , Tips For Using Business Credit Cards will keep on going up.

Many people are wondering why they didn't take their i.e. 100% or 200% gains when they had the chance. Most investors , Home Mortgage Loans will rationalize they ran these high gains down because they were afraid they would lose even higher profits. In my opinion, for many of these investors, , Personal Bank Loans it was just plain greed that prevented them from selling , Tips For Using Business Credit Cards their stocks. , Tips For Using Business Credit Cards

Every experienced trader knows that fear and greed are two emotions that can dramatically affect your success , How About An Adjustable Rate Mortgage in the market. , What Does Your Credit Say About You

You have to deal with controlling greed and fear every single day. Although there are no easy answers when it comes to the stock market, , Get A Low Cost Secured Loan Hassle Free of one thing I am certain:

If you are a greedy trader and always try to squeeze every last point out of every trade, , What Does Your Credit Say About You it's only a matter of time before you end up with a lot less than you actually started with!.

Oliver Velez of www.Pristine.com says that greed is "that little monster that resides in every single individual." Part of our success , Mortgages For Dummies Tune Up Your Credit Score in the market, , Home Mortgage Loans he says, is learning when to give this little monster a little bit more room to operate and when to curtail its actions. "Every single event , Home Mortgage Loans has two ultimate outcomes--either a win or a loss," says Velez. "Greed can make you gaze at the stars without having any consideration of the rocks below. It can prevent you from considering the fact that there is a downside and establishing a stop loss, or developing a systematic way of exiting or aborting a trade , Nasdaq Rising Wedge if in fact things don't work out."

The embarrassment of having to report the loss to others may also contribute to the tendency not to sell losing or gaining investments. , Nasdaq Rising Wedge

Some researchers theorize that investors , How To Choose Your New Credit Card follow the crowd and conventional wisdom to avoid the possibility of feeling regret in the event , Get A Low Cost Secured Loan Hassle Free that their decisions prove to be incorrect.

Many investors , Foreign Currency Mortgages The Pros And Cons find it easier to buy , Choosing The Right Mortgage a popular stock , Credit Card Minimum Payments On The Rise and rationalize it going down since everyone else owned it and thought so highly of it.

Copyrigh'2005 I.E.C. Haramis haramis@greekshares.com http://www.greekshares.com

Ioannis - Evangelos (Akis) C. Haramis was born in Greece in 1951 and he studied in Greece, USA and in Belgium. He has been active in the stock markets , Clearing Up Myths About Penny Stocks since 1972. Since 2002 he is New Business , Mousetrap Development Managing Director at an Investment Bank , Online Insurance Shopping The Easy Way and the publisher of GreekShares.com