The recent financial crisis was the best illustration of the Greed and Fear factor. In most cases, stock markets around the world are driven by Greed and Fear too! During the bull run, everyone is afraid of losing out and started jumping into the market without looking at the fundamental and this is primarily driven by Greed factor. When the market is falling like what we experienced in Oct 2007 and September 2008, everyone is gripped with fear that they started selling their stock holding. The oversold scenario caused the market to collapse and many ordinary folks in the market see their hard earned money turned into useless paper.
It is important to map out the timeline for your investment and ensure that feeling is taken out of the equation. In this case, you will not be trapped in the greed and fear factor which causes one to lose money. Map out your investment objectives and timeline and follow the plan. If you fail to plan, you plan to fail....
Happy Investing....
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