contagioemocional

#contagioemocional feel what the crowd feels
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Emotional contagion refers to the human tendency to absorb and reflect the emotions of those around us. In the context of trading, this can manifest when investors get carried away by collective enthusiasm during a price increase or by widespread panic during a decline, even if the fundamentals of the asset have not changed. This influence can divert traders from their planned strategies, leading them to make impulsive decisions based on market sentiment rather than objective analysis.

Bandwagon effect: acting because others do or "bandwagon effect", is the inclination to follow the actions of the majority, assuming that if many do it, it must be right. In trading, this translates to buying or selling assets simply because others are doing so, without one's own critical evaluation. This behavior can lead to entering the market at inappropriate times, such as buying at highs or selling at lows, based solely on social pressure and not on a grounded analysis.

Tips to avoid falling into these traps
Pause and reflection: Before making trading decisions, it is crucial to stop and assess whether the action is based on one's own analysis or on the influence of collective behavior.

Personal research: Conducting independent analysis of the assets, considering their fundamentals and long-term prospects, helps in making informed decisions.

Emotional discipline: Developing the ability to recognize and control one's own emotions can prevent

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