The Lord Of Myself

Twinkle, twinkle little star...!! Shoot for the stars, even if you miss those you'll reach the moon.

Friday, October 17, 2008

Greed Vs Fear

9 out of 10 times, I believe greed wins over fear - especially in stock markets with terrible consequences. I am just dabling in and out of Indian and US share markets for over an year- so my impressions can be ignored and need not be taken with any pinch of sugar or salt. Ok, on the otherhand, what happens when fear wins over greed - utter inaction and wastage of one's life and potential - even worst outcome than being overly ambitious. So, what should prevail - greed or fear? Some intelligent nut might suggest the balance of both or that you should control both greed and fear or you should've neither- utter bull shit!

The answer to this question, like for most complicated questions, is to be knowledgeable and comfortable with what you are doing. Superficial knowledge is more fatal than no knowledge (remember, half-knowledge is dangerous!). I burnt my hands with derivatives, so I believe the answer has to be beyond greed and fear. Derivatives are cited as weapons of terrible mass-destruction, because many people don't understand what they actually comprise, how the underlying stuff effects its value, and its various hedging options.

Trying to be jack of all 'trades' or being shallow & superficial will cause more harm than zero knowledge. Indepth knowledge, fast response times, and intellectual curiosity will cushion you in these turbulent times.