The World Blog by humble servant.

The Psychology of Fear and Greed in Trading: Navigating the Emotional Rollercoaster By the Humble Servant Trading isn't just about charts, algorithms, or economic data—it's a deeply psychological battle. At the heart of it lie two primal emotions: fear and greed . These forces drive market sentiment, often overriding logic and leading to irrational decisions. In a prolonged bull market where prices climb relentlessly, greed dominates, fostering overconfidence that masquerades as skill. But when the inevitable downturn hits, fear crashes in like a tidal wave, mentally shattering the unprepared. This cycle explains why, despite millions trying their hand at trading, only a tiny fraction—estimates suggest less than 10%—achieve consistent success. The key to breaking free? Self-awareness: the ability to objectively separate your ego and emotions from the market's whims, basing decisions on disciplined analysis rather than herd mentality. Let's dive deep into this, unpacki...