When Dopamine Takes Control in Trading š¢
Has this happened to you? You're in front of the chart, with your zones and areas perfectly marked, but the price starts to fall more than expected. Instead of sticking to your strategy, you feel that need, that almost uncontrollable urge to buy.
"This is how I average my costs," you tell yourself.
"It's a good opportunity," you try to convince yourself.
You make the purchase and, for a moment, feel a release of dopamine. A sense of relief, even victory, washes over you. But then, the market continues to fall, and that same purchase that seemed like a good idea turns into pain, frustration, and regret.