Main psychological challenges in trading:
1st Fear: The fear of losing money can lead to overly conservative decisions, such as not entering good opportunities or exiting winning positions too early.
2nd Greed: Greed can lead to overly risky decisions, such as excessive leveraging or holding losing positions in the hope of a miraculous recovery.
3rd Anxiety: Anxiety can lead to impulsive and irrational decisions, such as entering trades without prior analysis or exiting trades out of panic.
4th Frustration: Frustration with losses can lead to revenge decisions, such as increasing the size of positions to try to quickly recover lost money.