Fear when others are greedy, greed when others fear - Buffett
Those who have had a trading experience will realize “fear and greed”, they will make you struggle in hesitation, whether should we take action? There is nothing wrong with “fear and greed” in trading. Buffett’s famous saying tells us that there should be a little more reverse thinking in the trading process.
Reverse thinking and herd mentality are correspond. In the stock market, when a small number of people notice the bull market, the market will not undergo qualitative change. When the majority of people are optimistic, the market will undergo qualitative changes. The same is true for bear markets. The stock market continues to fall, and the pessimistic atmosphere permeates the entire market. For some people with reverse thinking, it is the best time to invest. Buffett has a saying: When people are flocking, you should be careful; when people are afraid, you should try to be interested in it. Whether it is so-called investment or speculation, obtaining a high return on the final profit is the real motivation for people to invest in stocks.
Reverse thinking is embodied in the stock market:
1. The extremes of things must be reversed: the truth of the universe develops to the limit, and it will transform in the opposite direction. This is the general law of everything. When 99% of people see more, the market may peak, and when the vast majority of people are short, the market will change.
2. A small number of majority: In the bear market, when the stock price falls to the bottom of the valley, most people have already left the market, and the main funds have also been withdrawn. Most people think that the market will continue to fall, and the result will be that the market will gradually strengthen.
3. Most of the minority: In the bull market, when the stock price climbs to the peak, it can be said that more than 99% of the people are bullish, they think that the stock price will rise, and when the people who want to buy stocks buy the stock, So, who are they selling to?
Fear and greed in trading
There is nothing wrong with "fear and greed" in trading. It can be said that fear and greed are the driving force behind people's willingness to participate in speculative trading. Because you fear that your money will be less, so you have to speculate; because you want your money to get more and more, so you have to participate in speculation. Fear and greed are the inner nature of human beings, your inner "existence", how can you "success" your "existence".
The root cause of greed is because you are unaware. If you know that "meat" is hung above the trap, you will not greedily take the piece of meat.
Fear is the first personal experience since your birth, otherwise you will not cry when you are born. The only way to get rid of fear is not to “before fear” but to “get deep into fear” and “to accept fear”. Only when you accept "fear" completely, fear can disappear. Your biggest fear in trading is "to win and lose" and to lose money. So there is such a saying in the transaction: "Love your loss, let the profit grow naturally"; "Unless you can accept your losses, you are likely to make a steady profit" These statements are by no means nonsense.
So the point is not to stare at how you can overcome "fear and greed" but to be aware of what changes are taking place in the market.
When people face something new, there is always fear. Recently, the crazy skyrocketing platform token FOT has made many people lament that it is too late to get on the bus. People don’t dare to start when the platform currency is first released. The fear makes many people tremble. In two months, the price of FOT has risen from 0.03USD to 0.394USD. The earliest people who have started have earned more than 11 times. Some people are good at FOT, and they are prepared to start a lot of FOT, but the innate psychology makes him cautious to make transactions. On the one hand, he wants to catch up with the next surge of the FOT. On the other hand, he has various concerns and has a rush. I began to hesitate and doubt. It is not unreasonable to seek to avoid disadvantages, but to deal with this matter, it is still necessary to accept your own losses. If every day fear occupies your mind, the platform is a waste.
PlusFo has always been committed to creating a completely ecological platform, including mining, quantification, games and many other forms of application. In the future, PlusFo will gather all aspects of medical beauty, e-commerce and other applications, and become a new ecosystem. The platform currency FOT can be converted into four major currencies, which can also be obtained through mainstream currency exchange. Those who are good have become the VIP of PlusFo, and they will get a super bonus per month and enjoy monthly dividends.
A veteran player once said: "When I am optimistic about a project, I will definitely seize the opportunity. When most people are afraid, I will be greedy. When most people start greed, I become afraid. VIP is A lever on this road, he magnified the timing."
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