Negative Feedback

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Dictionary Says

Definition of '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.
Investopedia Says

Investopedia explains 'Negative Feedback'

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.
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'Negative Feedback'

  • Using Feedback To Improve Your Trading

    http://www.investopedia.com/articles/trading/10/understanding-feedback-loops-trading.asp
    ... decision with further positive results. Negative Feedback Loops There is
    a flip side, of course. Negative actions lead to negative ...

  • What does negative shareholder equity on a balance sheet mean?

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    ... Order Reprints Reprints. Feedback Feedback. What does negative shareholder
    equity on a balance sheet mean? Negative shareholder equity ...

  • Can a stock have a negative price-to-earnings (P/E) ratio?

    http://www.investopedia.com/ask/answers/05/negativeEPS.asp
    ... Can a stock have a negative price-to-earnings (P/E) ratio? ... Mathematically, there
    are only two ways for a ratio of this form to have a negative value: ...

  • Can a bond have a negative yield?

    http://www.investopedia.com/ask/answers/06/negativeyieldbond.asp
    ... Can a bond have a negative yield? The return a bond provides to an investor
    is measured by its yield, which is quoted as a percentage. ...

  • Can an option have a negative strike price?

    http://www.investopedia.com/ask/answers/06/negativestrikeprice.asp
    ... Analysis. Tweet. Email Email. Print Print. Order Reprints Reprints. Feedback
    Feedback. Can an option have a negative strike price? The ...

  • Get Positive Results With Negative Basis Trades

    http://www.investopedia.com/articles/trading/08/negative-basis-trades.asp
    Get Positive Results With Negative Basis Trades. September ... In the credit
    derivatives market, basis can be positive or negative. A ...

  • Key Strategies To Avoid Negative Bond Returns

    http://www.investopedia.com/articles/bonds/12/avoid-negative-bond-returns.asp
    Key Strategies To Avoid Negative Bond Returns. ... Given the above risks, below
    are several strategies of how to avoid negative bond returns. ...

  • Get Positive Earnings In The Negative-Sum Market

    http://www.investopedia.com/articles/trading/10/winning-negative-sum-game.asp
    Get Positive Earnings In The Negative-Sum Market. ... In this article we will go over
    what a negative-sum game is, and also how it can be overcome. ...

  • Tales From The Trenches: Perfectly Negative Profitability

    http://www.investopedia.com/articles/trading/08/correlation.asp
    Tales From The Trenches: Perfectly Negative Profitability. January ... direction. In
    negative correlation, two assets move in opposite directions. ...

  • Option Price-Volatility Relationship: Avoiding Negative Surprises

    http://www.investopedia.com/articles/optioninvestor/05/020205.asp
    Option Price-Volatility Relationship: Avoiding Negative Surprises. ... Check out The
    Price-Volatility Relationship: Avoiding Negative Surprises.). ...

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