Fear is needed in trading and investing to make the game of the financial markets more interesting. When one discovers who is genuinely afraid and understands that fear, one can take advantage of that juicy investment opportunity.
When there is fear in the financial markets, there are always sectors that turn bullish while others are under pressure. It is not only greed that is good (motivator), but fear too, because it creates opportunities in the financial markets.
The key is to know and understand common financial markets fears, and spot them as they engulf the market in view to make an intelligent investor's or trader's decision.
Finally, remember that technical and fundamental traders rely on the VIX indicator to quickly gauge the current level of fear in the financial markets.
That is it. I hope this has been a valuable educational material for you. If that is real, please share and bookmark it today. Also, remember to say few good words about us in various trading forums.
Stay tuned because soon I will be posting another investing article.
I wish you the very best in your investor life.
This article is written by G Beaulieu
Founder of Stochastic-macd.com