Emotions can cloud judgment in trading from "summary" of Reminiscences of a Stock Operator by Edwin Lefevre
One of the key lessons that traders need to learn is that emotions have the potential to cloud their judgment when making trading decisions. This is a concept that is often overlooked by novice traders, who often allow their emotions to dictate their actions in the market. As the legendary trader in 'Reminiscences of a Stock Operator' demonstrates, emotions such as fear, greed, and hope can lead traders to make irrational decisions that are not based on sound analysis or logic. These emotions can cause traders to hold onto losing positions for too long, or to exit winning trades t...
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