Greed vs Fear

[InvestorB]

Hi all...

everyone is now talking about how the worst is now over and we are headed for a bull run...but after what I have seen[and lost ]in my short trading experience makes me fearful to enter the markets again....

The strategy now[as put in by Alchem] is to "buy on dips"...but i have my questions...

when do you know that a bull market is being driven by valuations and the bull run is for real and not the greed which is pushing up the stocks??

As W. Buffet has said, be fearful when the 'mass' is greedy..and be greedy when the 'mass' is fearful..

What wold you say the mass sentiment about the market right now??

looking at the up move we have seen, it looks to me to be greedy.. so wouldn't it be foolish to enter markets when the sentiments is 'greedy'?

i am not sure if we can say that the sentiment is even 'greedy' right now...

 

[vasa1]

....
As W. Buffet has said, be fearful when the 'mass' is greedy..and be greedy when the 'mass' is fearful.....

He also said that we pay a high price for a "cheery consensus".

 

[aw10]

InvestorB.
I think, u are confusing short term trading with long term "Buy and hold" investing. Market goes in cycles in different timeframe, so when we might
be in for upward move in longterm cycle, but in shorter terms, there might be down turns..
Rules of trading are different for short term (precise entry, exit, risk mgmt and trading disciplin etc) and long term (same points but implementation can tolerate a bit of sloppyness/lazyness) ..

Happy Trading

 

[man4urheart]

Well when Alchemist said buy on Dips, it implies buy in small quantities at various stages

Strategy ONE

- Enter in small quantities and Buy when NIfty comes at 4000

- Average if still nifty dips to 3700(300 Points)

- Further average @ 3300 and so on....

Strategy TWO

Enter near 50 EMA for the scripts you want to enter and average on further dips near the support levels!

Take your pick!

 

[marketmover]

Generally a person who invests for a long term should have the patience and the conviction to hold on, I have seen the very people who invest for long term, generally end up being short term traders, listening to analysts who tend to confuse investors by either infusing fear or over confidence with their statements

 

[Jazz]

That’s true and i think it’s important to do your own research.

 

[trader675]

Yaa i agree. We must stay away from herd mentality and its better to stick to your decisions and not get affected by what other people say. We should use our own mind.