As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
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Technical Analysis and Charting
Stock Tips

Wednesday, 21 October 2009

Greed And Fear - Part 3

http://createwealth8888.blogspot.com/2009/10/greed-and-fear-part-2.html



Greed and Fear are driving the market sentiment at all time and also the driving force behind the buying and selling decisions of almost all market players - Institutional mangers (BBs), Retail investors, traders and yourself except for those buy and forget.

Stock Market is one of those Complex adaptive systems



Complex adaptive systems are special cases of complex systems. They are complex in that they are diverse and made up of multiple interconnected elements and adaptive in that they have the capacity to change and learn from experience. Simply, it means the Stock Market has a mind of its own.

When the fear falls on the Market, it can become more fearful; and through self-learning and eventually breakdowns.

When the last batch of panic sellers are done, Greed will slowly creep back into the market, and soon every body will rush in to buy. Take a good look at the picture below:




Do you know why you buy and why you sell?

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