Greed and Fear in the Share Market
Greed and Fear in the Share Market, Let us begin with the basics. The Share market, just like any other market, exists to create wealth by facilitating investments by others. The Share market is nothing more than a method for investors to pool their money together and make a profit when the market price of a particular share goes up. The concept is not new. For centuries, people have used the market as a mechanism to organize and manage their wealth.
Share Market information
The rise of the Internet and associated technologies has dramatically altered the manner in which Share Market information and data are exchanged. Today, an investor can access multiple data and market monitoring services at the same time. This explosion of available information has made it possible for Share Market investors to take advantage of the rising share prices.
Greed and Fear in the Share Market are the first tendencies to show up when Share Prices are rising sharply. As the name implies, this is usually a result of over-confidence. People who are inexperienced in the market or have been paying attention to the rise of interest rates in the US feel that they should now buy into the share scheme because the prices are going up. They jump into the market expecting to make quick profits, i.e., “I want to make quick money”. The only problem with such thinking is that people rarely see the long-term picture. A market will continue to have ups and downs, even when prices are going up.
Greed and Fear in the Share Market, Greed and Fear are a tendency that generally leads to ill-informed investments. An investor may buy shares of a company that he does not understand, and as a consequence, ends up losing his money. This kind of scenario happens very often and most investors end up paying for it in the form of heavy losses. There are many factors that affect the performance of the market, and an experienced investor must learn to identify the ones that affect his investment decisions the most.
Many new investors enter the market without having a basic understanding of the nature of the market, its operations, and risks. They generally rely on what the experts say. However, there are also plenty of companies out there that offer shares through brokers who do not have a negative view of the market. These firms allow first-time investors to try out the market and help them evaluate their skills. These companies often present educational seminars where experts from various fields, such as finance, economics, business management, and accounting give their views on the share market.
Greed and Fear in the Share Market, Greed and fear in the share market are the results of the desire of some people to control the fate of the share market. It is like a scene out of “Fear Factor”, the movie, where the character George Sellers purchases all the shares he can lay his hands on before others realize that they have been conned. The scenario resembles the story of the manipulator in the film, who makes his next big move only when everyone else has already made a decision. In this sense, Greed and fear may be both good and bad, depending on how an investor decides to proceed. A smart investor, however, will use his or her intellect and skill to get ahead of others and make the most of the share market.
There are also those who use the fear factor in order to pull the wool over the eyes of others. It is a way of deceiving investors to buy shares that are less than what they should be investing in. There are also those who buy the shares of companies that are not making enough profit for their investors. This is done in the hope of seeing a great rise in the share market, but then invest the difference into other companies so that they can realize profits and eventually pay off their creditors.
Whether you are a savvy investor or are just trying to play the share market, you must be aware that Greed and fear can be used to your advantage. You must learn how to use them for what they are supposed to do – to provide you with opportunities. There are no guarantees in the share market and there is no such thing as a sure thing. You never know when someone else is going to come up with a brilliant idea and make you rich off of it. But you never know when someone else will suffer a huge financial loss because they tried to do something different than everyone else.