So often, investors get caught up in greed. Greed in the stock market causes prices to rise. Investors all of sudden become "more confident" and try to buy the stock at very high prices in an environment which is charged with positive energy. Greed ends up either buying stocks at high prices or not taking exit at high prices.

Then comes the million dollar question. How to avoid greed? The only answer to this question is sticking to a well-thought-out plan backed by a risk-management system. Mechanical implementation of such a plan with great discipline is required to free investors from the clutches of greed.