Psychology Of Greed, Hope And Fear

We have talked about the strong human motivators of desire for gain and fear of loss, earlier in this column. This psychology becomes especially obvious when dealing with real money in places like the stock market. Because of the psychology of greed, hope and fear, most people cut their winners and hold on to their losers instead of cutting their losses quickly to ride the winners. This is an allegory for success in life, really. Learn to cut your losses and hold on to your winnings.