Negative Feedback

Negative Feedback

A pattern of contrarian investment behavior. An investor using a negative feedback strategy would buy stocks when prices declined and sell stocks when prices rose, which is the opposite of what most people do. Negative feedback helps make markets less volatile. Its opposite is positive feedback, in which a herd mentality pushes high prices higher and low prices lower.

On an individual level, negative feedback can refer to a pattern of behavior in which a negative outcome, such as executing a losing trade, causes an investor to question his or her skill and discourages him or her from continuing to trade. Developing a rational trading plan and sticking to it can help investors maintain confidence and avoid falling into a negative feedback loop even when they execute a losing trade.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • negative feedback — n feedback that tends to stabilize a process by reducing its rate or output when its effects are too great * * * the condition of maintaining a constant output of a system by exertion of an inhibitory control on a key step in the system by a… …   Medical dictionary

  • Negative feedback — Most endocrine hormones are controlled by a physiologic negative feedback inhibition loop, such as the glucocorticoids secreted by the adrenal cortex. The hypothalamus secretes corticotropin releasing hormone (CRH), which directs the anterior… …   Wikipedia

  • negative feedback — neigiamasis grįžtamasis ryšys statusas T sritis automatika atitikmenys: angl. degenerative feedback; negative feedback; reverse feedback vok. Gegenkopplung, f; negative Rückführung, f; negative Rückkoppfung, f; negative Rückkopplung, f rus.… …   Automatikos terminų žodynas

  • negative feedback — neigiamasis grįžtamasis ryšys statusas T sritis fizika atitikmenys: angl. degenerative feedback; negative feedback; reverse feedback vok. Gegenkopplung, f; negative Rückkopplung, f rus. отрицательная обратная связь, f pranc. contre réaction, f;… …   Fizikos terminų žodynas

  • negative feedback — This occurs where the products of a process can act at an earlier stage in the process to inhibit their own formation. The term was first used widely in conjunction with electrical amplifiers where negative feedback was applied to limit… …   Dictionary of molecular biology

  • negative feedback — negative reinforcement, criticism, negative response …   English contemporary dictionary

  • Negative feedback amplifier — Figure 1: Ideal negative feedback model A negative feedback amplifier (or more commonly simply a feedback amplifier) is an amplifier which combines a fraction of the output with the input so that a negative feedback opposes the original signal.… …   Wikipedia

  • negative feedback loops — physiological loops for the control of hormone production by various glands. High levels of a circulating hormone act to reduce production of the releasing factors triggering its own production, i.e. they have a negative feedback on these trigger …   Medical dictionary

  • negative feedback loop — a physiological loop for the control of hormone production by a gland. High levels of a circulating hormone act to reduce production of the releasing factors triggering its own production, i.e. they have a negative feedback on these trigger… …   The new mediacal dictionary

  • negative feedback factor — neigiamojo grįžtamojo ryšio faktorius statusas T sritis radioelektronika atitikmenys: angl. negative feedback factor vok. Gegenkopplungsfaktor, m rus. коэффициент отрицательной обратной связи, m pranc. facteur de réaction négative, m …   Radioelektronikos terminų žodynas

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”