I often thought that greed and fear drive investors to buy and sell securities at ridiculous levels.
Greed begets more greed. An investor who has made money would tend to feel invincible and believe his chances of making a fortune has increased. At this point
More often than not you are likely to experience both hope and fear simultaneously.
When you’re long and the market is going up, you:
- hope it will keep going but
- fear it won’t.
If your fear is great enough, you will get out and hope the market turns down.
When you’re long and the market goes down, you:
- hope it will turn around but
- fear it won’t.
If your fear is great enough, you’ll get out and hope that it keeps going down.
When you’re not long in the market but want to be and the market goes up, you:
- hope it will temporarily turn ...
