Market moves because of Greed and Fears.
Greed is a human emotion defined by Webster’s dictionary as the excessive desire for acquiring or possessing, a desire for more than one needs or deserves. We do not know the origin of greed, all we know is that it exists in every person.
Fear lays ready to appear in a single heartbeat, and when it does, it twists and distorts reason. Reasonable people act unreasonably when they are afraid. And they get afraid every time they start to lose money. Their judgment becomes impaired.
Hope lives hand in hand with greed when it comes to the stock market. Once a trade is made, hope springs alive. It is human nature to be hopeful, to be positive, to hope for the best. Hope is important to the survival of the human race. But hope, like its stock market cousins, ignorance, greed, and fear, distorts reason. Hope clouds facts, and the stock market only deals in facts. Like the
spinning of a roulette wheel, the little black ball tells the outcome—not greed, fear, or hope. The result is objective and final with no appeal . . . like nature.
Good trader enters into a position when most of the people already get out due to fear. This is what happens now for APPA, GSX and SATC.
Those people because of fear already get out of these three stocks due to recent downtrend, the remaining people will not sell because of hope, they hope that they will recover the losses one day.
In conclusion, the current down side risk for APPA, GSX and SATC is minimum, the likely trend from here is up and current technical analysis is reflecting the fact.
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