All these while, the stock market is driven by two different emotional state - the greed and the fear.
When things are good and all the people felt like wanted to earn more money, they go to the stock market hoping to get more money from there. They treat the stock market like a casino hoping they would hit the jackpot and to achieve the so call "financial freedom".
Many Gurus out there try to construct a dreams for all their students just to lead them in believing that they've found a strategy that would lead them in earning lots of money without effort. Conrad's Alvin Lim (My Mentor in Pattern Trader) always said "Stocks Guru comes and goes in every 4 years" - because when the market acted correctly, you'll get your'll earn a small portion of money leading you to believe that the strategy that you acquire really works.
Once the market changes its sentiment then you'll put in more money believing that your super money earning strategy should works but at the end losing more money.
Another emotion is the fear emotion which you will find a lot of people started to say that stocks market won't work. Everyone afraid of investing and they tell you that it is risky and you'll lose all the money you put in. They're so afraid that they will lose all their money until they don't even want to put in a penny into the stocks market. Some even sell at a huge losses believing that the market will collapse and will never return.
The Greed and Fear has always been in a cycle leading one to another from time to time however this is not really a time.
Today. Many had seen how people profit from the market, they've also know that stock market is risky.
They developed these mixture of fear and greed into a another set of confuse emotion which leads to volatility in the market. On one hand they wanted to push the market up and profit from it hoping that they will profit from the market.
On the other hand, they fear losing their capital and hard earn money resulting them monitor their stocks so closely and any sort of bad news will lead them selling the market fast.
Technology has contributed much in leading them to buy and sell faster than decade earlier and resulting in a true TRADING MARKET.
Trading Market is a fierce market where only the strong will remain in the game and the weak will very quickly be eliminated. Knowledge and Discipline has more important role than before. Even the fund managers are cracking their head hoping for another super bull market to appear.
Trading market will still be exist for sometime. Until then.... We have to make sure that we remain the strong ones.
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