Tuesday, November 10

Two Emotions That Can Influence Your Trading

Short term market volatility is powerfully influenced by fear and greed.
But fear and greed aren't the only emotions that influence market decisions.
Other emotions, such as disappointment and regret, can also impact what market timers do and can have adverse effects on their timing decisions.
It is only normal to feel "disappointment" when our trades fail to meet our expectations. We feel "regret" when we think that we have made a poor decision that could have easily been avoided.
There's an assumption that underlies both emotions, and both of these assumptions can be dangerous to our ability to be profitable.
Must We Always Be Right?
We may believe irrationally that as market timers we must always be right and each buy and sell outcome must meet our expectations. If those expectations are not met,
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