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Emotions

February 8, 2013 – 6:13 pm

Stock-Market-Trading-TipsThere is a tug of war between the bulls and bears taking place this month and so far there is no clear winner. After a large short term run up such as we had in January stock prices will usually consolidate before either continuing the rally or fall. This consolidation period is important. The longer it lasts the better the odds of a continuation of the rally. It comes down to fear and greed. Fear of losing profits causes corrections after a run up while greed takes hold if stock prices go sideways for a length of time because new investors do not want to miss the next run up.

The market is simple in its reactions. If you can anticipate its only two emotions of fear and greed you will become a successful investor.

Good Trading
Steve Peasley

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