From Hope and Aversion to Regret: Hope can be a dangerous emotion in trading when holding onto a losing position with the expectation that the market will reverse. This attitude often culminates in significant losses. This temptation can even lead to the phenomenon of "revenge trading". On the other hand, regret aversion can manifest as hesitation and indecision in trading. Traders may be reluctant to make decisions for fear of regretting the outcome, which affects their ability to capitalize on market movements.
