🎢 The emotional cycle of the trader during corrections
When the market enters a down phase, not only do prices drop... storms also unleash in the trader's mind. Each stage activates neurochemical responses that influence their decisions.
🔹 Denial: "It's just a correction, it will recover soon."
🔹 Anxiety: The price keeps dropping and cold sweat appears.
🔹 Fear: The loss accumulates and panic begins.
🔹 Despair: Hope is lost, some positions are closed at a loss.
🔹 Capitulation: Many leave the market due to emotional pain.
🔹 Depression: Inactivity, doubts, low confidence.
🔹 Acceptance: Objectivity is regained and learning emerges.
👉 Recognizing these phases not only helps to understand your emotions but also to avoid impulsive decisions that sabotage your strategy. What stage are you in today?
📚 Psychology of market cycles