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The Stock Market Investors Worst Enemy
[ 录入者:admin | 时间:2007-08-15 00:55:41 | 作者: | 浏览:28次 ]

Every stock market investor faces one primal enemy. An enemy so perverse, it will drive thousands of investors from the stock market through its ability to defeat even the most practiced investment strategy. Who is this enemy you ask? Your arch nemesis, in this case, goes by the name E. Motions?don't ask me what the "E" stands for.

Emotions are the driving force behind every stock market cycle. Quite simply, if they weren't present in the stock market, investors could be reaping rewards based solely on the expanding or receding economy, and professional traders wouldn't have any juicy profits from those emotional mistakes to grab.

Here is an example scenario:

Let's say that you've done your homework, read the books, traded on paper, and now you're making your fondest dream come true by investing in the market and making money!

You maturely approach losses as part of the learning curve. You've experienced your share of them but your wins are still in the lead, thanks to the commitment you made of not deviating from your chosen strategy. Euphoria sits on your shoulder.

One day, after 3 frustrating hours in traffic, you get home to find changes. You know that you should follow your strategy, but Stress and Greed are in charge. You're buying and selling outside your strategy, but are confident that it will be ok - just this once.

Now prices are dropping and Fear enters the room.

Fear attacks every

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