Sep

4

Fear, from Ken Smith

September 4, 2007 |

PumpkinBad news is always around. Bad news and dire predictions are reasons to dump holdings and perspicacious traders are aware of this. They game the news, game economists, game everyone. Fear drove me out of a position Friday; had I held I would have had a profit to take as of half an hour into the trading day. I let fear temporarily overtake logic.

Eric Ross adds:

Join the team! Fear and emotions have driven me out of trades, have prevented me from taking positions. Today, after dawn patrol, I wanted to enter the market, but emotions prevented me. It seems one should just buy the dips and not look back, accept the risk of a drawdown.

Alan Millhone remarks:

I wonder if we had no TV, did not look at magazines or newspapers, and stayed focused on the data at hand — would that exclude emotions and thus make traders more successful? The news media can twist anything — and when you see something you automatically believe it!


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