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Topic
Psychology
6 guides in Finabase Learn
- Averaging down Buying more of a holding after its price falls, lowering the average cost per share but raising the position's size and risk.
- Bear trap A false breakdown below support that lures traders into selling short just before price reverses higher.
- Bull trap A false breakout above resistance that draws in buyers just before price turns back down.
- Capitulation A burst of panic selling, often on very high volume, as holders give up; it sometimes marks the late stage of a decline.
- Contrarian An approach that deliberately goes against prevailing sentiment, buying when others are fearful and selling when they are greedy.
- Market sentiment The overall mood of investors toward a market or stock, from fear to greed, and the surveys, ratios and volatility gauges used to measure it.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.