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The 4 Most Dangerous Emotions for Traders

http://www.moneyshow.com/articles.asp?aid=DAYTRADERS-40077&scode=010473

Four Psychological States of Emotion: Greed, Fear, Hope,
and Regret

There are four psychological states of emotions that drive most individual decision making in any market in the world. They are greed, fear, hope, and regret.

Since the stock market is made up of individual human beings who tend to act in similar manners, a group is formed. It is only the group's opinion that matters during a trend, but it is the individual trader's job to identify the subtle clues as to when a market is about to shift direction.

The clues are there, but they are subtle. An awareness and detailed understanding of these emotions is what keeps the astute technical trader out of trouble by providing a means to identify individual weaknesses. We shall now take a closer look at these emotions, and provide examples of how they influence a trader's ability to consistently make money.