The Fear & Greed Cycle

Learn The Fear & Greed Cycle — part of our Trading Psychology series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

Emotions move markets — and traders

After Module 10 you understand workflow. Now we address psychology — the main reason skilled traders still fail. Markets cycle between fear and greed; traders mirror this internally.

  • Greed — oversized positions, chasing, ignoring stops after wins.
  • Fear — closing winners early, hesitating on valid setups, avoiding entries after losses.
Calm Fear Greed Recognise which phase you are in before clicking buy/sell

Your trading plan (Module 5) is the anchor when emotions rise. If you cannot follow the plan, step away — that is a professional decision.