See the below Infographic Emotions vs. Logic In The Market to visualize differences between emotional traders and a more successful objective approach If your anxious and your heart is beating when you re in a stock, your position size is most likely too large. Fear and greed the two strongest emotions that can and will negatively impact your trading success, usually in a negative way.. Fear Distress Over Losses Psychologically, our minds process losses as more significant than a gain of the same amount. In trading, our fear of being wrong will often be used as a reason for staying in a losing position which leaves our accounts vulnerable to larger losses. The most important part of trading is risk management, if you have a consistent and objective approach to risk management it will allow you cut your losses fast, and hold on to your profits! Greed Batting For Home-Runs Coulda, woulda, shoulda. Those are 3 words that you should eliminate from your trading vocabulary, as they are mo
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