Fear, Uncertainty and Doubt (FUD)

A term used to describe the most common emotional reactions to largely false news about market trends.

Fear, Uncertainty and Doubt (FUD) is the collective term used to describe the array of sentiments that often accompanies bad news about market trends, especially prices and perceived expectations. Such situations are common and often originate from preconceived notions about market dynamics. In other cases, FUD is intentionally instigated by competitors so that traders and investors seriously consider pulling away from particular trading companies because of what they heard.

FUD is only valid in very few cases. The solution to it is a copious amount of accurate information which serves to counteract the negative emotions that characterize FUD and instill confidence in trading choices and decisions.