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  3. Fear and Greed
GlossaryTrading Psychology

Fear and Greed

The two dominant emotions of the markets: fear drives panic-selling and hesitation, greed drives chasing and oversizing. Most emotional trading mistakes trace back to one of them.

Appears in these guides

  • Emotional ControlTrading Psychology
  • Investing vs TradingGetting Started
  • Market CyclesTechnical Analysis
  • What Is Fundamental Analysis?Fundamental Analysis
  • What Is Risk Management?Risk Management
  • What Is Trading?Getting Started

Related terms

AnchoringCognitive BiasConfirmation BiasDisciplineDisposition EffectEmotional ControlFOMOHerd MentalityLoss AversionOvertrading

Related lessons

intermediateTrading Psychology

Confirmation Bias

Confirmation bias is the mind's habit of seeking out information that agrees with what we already believe — and dismissing what doesn't. In trading it keeps people married to losing ideas and blind to the warning signs. Learn how it works, how it traps traders, and how to build the discipline of seeking the opposite view.

intermediateTrading Psychology

Trading Discipline

Discipline is the bridge between knowing what to do and actually doing it — the meta-skill that makes every other edge worth having. Learn what trading discipline really means, why the gap between knowledge and execution is so wide, the role of a written trading plan and rules, and how to build discipline like a muscle.

Ironclad Research provides educational content only. Nothing on this platform is financial advice, a recommendation, or an offer to buy or sell any security. Always do your own research and consider professional advice before making financial decisions.