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In the end, he can’t take any more pain and sells out at a loss - right near the bottom. What’s so rational about this process? The original plan to buy may have been rational, but implementing it created an emotional storm. Emotional traders do not pursue their best long-term interests. They are too busy savoring the adrenaline rush or too twisted in fear, desperate to extract their fingers from a mousetrap. Prices reflect intelligent behavior of rational investors and traders, but they also reflect screaming mass hysteria. The more active the market, the more traders are emotional. Rational individuals can become a minority, surrounded by those with sweaty palms, pounding hearts, and clouded minds. Markets are more efficient during flat trading ranges, when people are apt to use their heads. They grow less efficient during trends, when people become more emotional. It is hard to make money in flat markets because your opponents are relatively calm. Rational people make dangerous enemies. It is easier to take money from traders who are excited by a fast-moving trend because emotional behavior is more primitive and easier to predict. To be a successful trader you must keep your cool at all times and take money from aroused amateurs. |
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发表于 2009-1-4 07:58
