February 12, 2012

The psychology of the stock market during the flash crash

When trading or investing in stocks, it's important to control your own emotions. This can sometimes be a hard thing to do, especially when something unexpected is happening in the market. One example of this is the following video showing a trader during the Flash Crash of 2010.

To never forget about your emotions, you could put a sign on the wall behind your computer saying:

"Put your emotions aside"

Paul Tudor Jones is famous for having a sign on his wall saying:

"Losers Average Losers"