#INVESTMENT MENTOR - Whenever Fear and Greed take over the market

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About 10% of all trades are driven by Facts, 90% by Emotions!
_{(André Kostolany)}

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Fear and Greed are very close to each other on any market, might it be the good old stock market or the quite new and booming one of cryptocurrencies. Sometimes single values are climbing up at lightning speed. That happens, whenever the desire and greed on profit is back. But many times just a single headline is enough to drag everything into the abyss, regardless whether the respective values are concerned or not...

But why are such turbulences on the markets actually happening? Because in the short term psychology rules the markets, not facts. Daniel Kahneman, a nobel winner, says we typically fear loss twice as much as we relish success. During a panic, Investors are therefore very likely to throw even the best values on the market for ridiculous low prices.

Even in good times Investors tend to act heavy-handed. Often they sell too early in order not to risk their most recent profits. By doing so they basically cut off their own chances on real longterm profits. So in case you want to trade on the markets you shouldn´t listen to any gut feelings but rather your head instead.

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Emotional trading at its best...

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_{(Source - Meine Meinung / J. Brandmaier)}

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_{(A Proud German Ambassador from & for #Teamaustralia!)}