Greed and fear, do they play a roll in your market decisions? When we fear a potential loss, we sell. When we are greedy, we buy or buy too much. It is a little more complicated though. Regret and hope also play a roll. People may trade in or out to avoid feelings of regret or may hold on to losing positions out of denial and a hope that the loser will turn around. Emotions play a powerful role in decision making.
Reprint from PrudentTrader archives 2005