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Are stocks driven by fear and greed, or rational choices?

Joshua Farrell

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Do you think that the stock market is driven by "fear and greed" or that investors all make rational choice about the best shares to buy? I do know that in most cases, it is a mixture of both parts of that question.
 
I think it depends on the trader. Most likely, if a trader is not yet that knowledgeable, it will mostly depend on fear and greed but if it's an experienced trader, it will be a rational choice. But that's just my opinion because there are still a lot of factors to be considered.
 
A bit of everything I would say.

The issue with stocks in the US is that there is a lot of insider trading happening. Remember the whole GameStop "stonks" ordeal? That was people gathering and doing what business owners and government officials do all the time and many people in that group got wealthy.
 
I think 70% of investment in the stock market is driven by greed and fear. There's the tendency for people to jump on the moving bandwagon without caring where it leads to. Only about 30% are decisions made rationally while the rest are a mixture of both.
 
You can be able to reliably say that they are actually controlled by a mixture of all of them because they are some kind of decisions where buy some people will take that will be greedy and there are some people that are more conservative.
 
You can never put a tentative conclution to that,because there are some that are driven dy greed,and then others could be as a result of fear that will drive them to take to some certain shares,and also some can just decide to buy due to certan factors that might not be that technical and relevant.
 
Do you think that the stock market is driven by "fear and greed" or that investors all make rational choice about the best shares to buy? I do know that in most cases, it is a mixture of both parts of that question.
Those that are ruled by fear and greed often don't make it good in the stock market.
The best investment decisions are usually the decisions made from sufficient information and devoid of emotions (fear and greed).
 
According to me, it is trader-specific.
Most likely, a trader who is still learning will make decisions based mostly on greed and fear, whereas an experienced trader will make decisions based on logic.
But that is merely my view because there are still many things to take into account.
 
As far as I know, only a few investors make a rational choice and most of the investors are driven by greed and fear. IN fact market fluctuates a lot because of fear and greed in most investors.
 

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