Trading Perspectives by Rob Friesen
FOOLISHNESS OF CROWDS— WISDOM OF MOBS?
Investors hear that they should “buy low and sell high.” This sounds attainable, but sadly, most investors and traders do the opposite. When markets rally, greed, which is the “fear of missing out” emotion, kicks in and participants buy high. When the market sells off, the fear of loss causes market participants to panic and lock in losses ...