Tag: emotions

Markets rise and markets decrease.It shouldn't matter much, but many new market timers discover that their very own personal mood fluctuates with the markets, moving from extreme euphoria because the markets soar to new heights to deep despair once the markets plunge to new lows.Why do market trends have such power over emotions?They won't need to, but many new timers have a problem cultivating a target attitude...

The stock exchange is driven solely by human emotion.Nothing else really matters.Human emotion is driven by perception, and perception is jaded by expectations.If your expectations aren't fulfilled, than your perception is that this is awful.If your expectations are high, you likely will be disappointed.The trick then is to gauge the expectations that stock traders have at any given moment.Unfortunately there isn't any reliable measurement that I know of to judge expectations...

We learnt the following the hard way! If any of these things applies to you, do not worry - there is a simple solution!Lack of Knowledge and No PlanIt amazes us that some people expect to trade the stock market successfully with no effort.Yet if they would like to take up golf, as an instance, they will gladly take some courses or read a book before going out on the program.The stock exchange isn't the place for the ill informed...