How Emotions Affect Your Trading Decisions

It does not matter whether you are reading sophisticated trading books or just browse around online trading forums, almost every trader seems to be aware of the fact that psychology has a big impact on trading performance. However, the way emotions affect trading decisions are very complex and not that obvious at the first glance.
When you think that biting nails, sweating or rubbing your hands greedily are the things that signal emotions while trading, this article will offer some valuable new insights. In the following we explain how to read emotions that affect your trading decisions and how to overcome the negative impacts that arise from emotion caused trading errors.
“Missed it! It had all the entry criteria going for it, but I didn’t like it somehow.”
Especially inexperienced traders or traders who find themselves in losing streaks often act like a stunned deer staring motionlessly into approaching headlights. The surest sign that fear is controlling your trading decisions is that even though you plan a trade and watch the setup unfold in front of you, you still doubt the trade and cannot pull the trigger.
If you notice that you constantly...

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