You will often hear that investors are subjects to emotions and that it is emotions that are often the basis of their failure. Let's talk a little more about these emotions.
We will look at some of the most common emotions we experience while trading on the stock markets and Forex, by looking at which emotions are healthy and good, and which are the ones that will fail us and "kill" us as investors.
We start, of course, with the state of full confidence when we open a position.
This is an emotion that is generally healthy. In order to successfully identify positions, a necessary condition to trade in the stock markets is to have confidence. Confidence based on our trading experience, historical results, the feeling that we have found the "Trade of the Year".
As not one or two experts are advising that we need confidence in order to trade on the market. This feeling, however, should not be illusionary. We should not be constantly confident that things can’t happen in a different way. Our confidence shouldn’t get us to overtrade as this is another major mistake and distorted interpretation of this emotion.
Usually overtrading is precisely a consequenc…