Categories
06. Psychology

KEY TAKEAWAYS

  • Trading psychology is the emotional component of investor’s decision making process which may help explain why some decisions appear more rational than others.
  • Trading psychology is characterized primarily as the influence of both greed and fear.
  • Greed drives decisions that appear to accept too much risk.
  • Fear drives decisions that appear to avoid risk and generate too little return.

39 replies on “KEY TAKEAWAYS”

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