#TradingPsychology

The Psychology of Trading simply refers to the feelings and emotions that a trader experiences and the associated actions that the trader takes as a result. Just like in any other aspect of life, understanding how our mind works can enhance our ability to trade better, make more informed, rational decisions, and take calculated risks.

For example, you may have seen people making emotional investment decisions. Even when the price of a stock in their portfolio is falling, they may continue to hold onto it because they regularly use that company's products and services and trust the company enough to take the risk. In this case, admiration leads them to ignore the evidence.