Do you think that the stock market is driven by "fear and greed" or that investors all make rational choice about the best shares to buy?

Fear and greed , you can watch sheep herd in farm house and see both the attributes in sheep . News and rumors play an important role in current markets , right investor does TA analysis to see how a stock has reacted to previous news or rumours and chances are he or she ends with profits .

Before selecting an investment channel, you should consider the risks related to the investment environment such as the following risks:- Exchange rate riskPurchasing Power Risk (Inflation)- Interest rate risk- Financing risks- Credit risk- Liquidity risk- The risk of achieving profitability on investment- Operational risk- Political, financial and economic risks- Management risk- Risk of insufficient capital or repayment of obligations- Risks of balance between liquidity and profitability  It is also necessary to study how to face these risks in the investment environment and then to study the means of investment according to the alternative opportunities available in the market after knowledge of the requirements of the investor and the duration of investment and the ability of the investor to take risks and hence is chosen investment opportunity available if the investor has the ability to bear risks The high can be invested in ordinary shares and then the preferred stock is chosen if the risk is less can be chosen bonds or financial instruments if he is looking for a less risky investment can be searched for savings channels such as certificates of deposit or bank deposits or certificates of If it is looking for less investment areas, it can invest in treasury bills or government bonds because it has a lower risk according to the size of the country, its credit rating and its commitment to repay its foreign debts in foreign currencies. In deciding the investment, As well as the availability of margin of safety in that investment if an investor looking for channels of investment is not suspected of usury in that case study investment opportunities with the addition of a legitimate concept to achieve the dilemma of the quartet of profitability and return and margin of safety and risk-free and they S with Shara.

"fear and greed ......................

We can say that stock market is driven by"fear and greed" but usually when any listed company want to generate finance then company issue shares in stock market after this shareholder purchase shares and receive profit on shares and some time loss. Thus company generate finance.

And investor make rational choice about the best shares to buy. When investor see that company will grow then he buy shares of that company and reveive profit.