A common pitfall among beginner investors and traders is neglecting the emotional part of trading and suffering the consequences.
What most professionals know from experience is that emotions play a significant role in determining your overall profitability as a trader. Beginners don’t have the time to focus on this aspect as they are dabbling with trying to find the single best strategy that would make them rich.
Trading psychology is usually something that people focus on at a later part of their learning curve. However, in order to make it through the beginning stages of your trading ventures, you should be mindful of the mistakes that emotions cause and know how to avoid them.
Below is a graphic illustration of the 7 main emotions that affect our trading results and clever solutions on how to fix them.
