How can emotional trading improve trading performance?

Emotional trading could lead to cognitive biases, impulsive decisions, and loss aversion, potentially resulting in reduced trading performance. Techniques such as mindfulness and meditation, journaling, positive self-talk, taking breaks, and seeking peer support could help traders manage emotions effectively and maintain emotional resilience.

What happens if you trade with emotions?

Trading with emotions could lead to cognitive biases, impulsive decision-making, and loss aversion, all of which can adversely affect trading performance. To navigate the emotional rollercoaster, traders must be aware of their emotions and employ strategies to keep them in check.

What are the 14 key trading emotions?

While the emotional spectrum of a human being can be vast and deep, traders typically distinguish 14 key trading emotions. These usually come in cycles, from excitement and euphoria, to fear and panic, and then despondency and depression. Let’s take a look at the key emotional points of a trader’s journey.

What are the emotional points of a trader's journey?

These usually come in cycles, from excitement and euphoria, to fear and panic, and then despondency and depression. Let’s take a look at the key emotional points of a trader’s journey. Euphoria, or the feeling of intense excitement or elation, could be provoked by a profitable trade, or a winning streak.