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Emotions can affect your trading decisions from "summary" of Secrets You Never Knew About Stock Market Investing and Trading by Swaminathan Annamalai
Emotions play a significant role in the decisions we make, and trading in the stock market is no exception. When it comes to trading, emotions can cloud our judgment and lead us to make impulsive decisions that we may later regret. One of the most common emotions that can affect trading decisions is fear. Fear of losing money or missing out on potential gains can cause traders to panic and sell off their investments prematurely. This fear can be exacerbated by external factors such as market volatility or negative news reports. On the other hand, greed is another emotion that can influence trading decisions. The desire to make quick profits can lead traders to take on unnecessary risks or hold onto investments longer than they should. This can r...
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