Page 61 - All Psychology Course PowerPoint Study Session Slides
P. 61
Eliminate Emotional Responses To Fear & Greed
Goals:
Understand Fear & Greed …
Fear:
1) Rational – Running from real danger
2) Irrational – Created by imagining “worst case scenarios”
Greed:
1) Feeling you missed something of value
2) Ego driven – Must have more of a desired item
Action Steps:
When you feel Fear or Greed you will feel the emotions associated
with those feelings…
1) Dissociate with the emotions and instead step outside yourself
and be objective about what is happening.
2) Act rationally instead of irrational
3) If you see Fear & Greed in the markets, look rationally at it and notice
the irrational behavior of other traders. Then objectively position
yourself to take advantage of their irrationality.
4) Have a set of trading rules with risk control that you have tested and
believe in! This will go along way to eliminating emotional trading!
