Learning how market cycles operate can be extremely beneficial to your trading, understanding the true influence of fear and greed.
But... Controlling your emotions within the market is your main 'personal' objective, becoming an emotionless trader 90% of trading is pure psychology. It is the main reason why so many traders fail as they let their trading become over-ruled by their emotions, thus making irrational decisions.
Many traders will never overcome their inherent emotional biases, therefore you should seek to understand the range of emotions we may experience as investors and how it affects our interactions within the market.
1. Optimism: A positive outlook encourages us about the future, leading us to buy assets. 2. Excitement: Having seen some of our initial ideas work, we begin considering what our market success could allow us to accomplish. 3. Thrill: At this point, we investors cannot believe our success and begin to comment on how smart we are. …