🔹 The influence of emotions
Fear and greed are key factors determining traders' behavior. Emotions can lead to impulsive decisions, capital loss, and poor timing.
🔹 Major cognitive biases
- FOMO (fear of missing out) — buying at highs without analysis.
- Overtrading — excessive trades due to greed.
- Confirmation Bias — seeking only positive information about one's investments.
🔹 How to control emotions?
1. A clear trading plan and risk management.
2. Cold analysis of data, not emotions.
3. Capital allocation to minimize losses.
📊 Charts:
1. Cycles of market emotions (euphoria, fear, capitulation).
2. Distribution of traders' positions depending on market sentiment.
3. The influence of news on impulsive trading decisions.
