Forex Psychology #01 - Emotions
What emotions are?
Wikipedia says: Link
- Emotion (from Latin e e movere "in motion ') - a state of significant mental movement. (...) Emotional processes are psychic processes that give quality to the cognition and activities of the subject and determine the meaning that objects, phenomena, other people and also their own person have for the source of emotions, that is, they value stimulation. *
Now it's a little brighter. As you can see in the definition there is no division into good or bad emotions, but you can see that it is a state of considerable mental shaking.
how is it that a man who loses money gets rid of the action? under the influence of emotions? (He is afraid not to lose more), but we are not dealing with emotions when she buys because she will miss the opportunity.
Markets, just as they are falling strongly, are also growing strongly. Are Every day hundreds of players' emotions? negative and positive: fear, greed, uncertainty, contentment, excitement, it all stands behind decisions of investors? both individual and professional.
✅When investors pay 190$ for assets, although they are worth 120$ they are not called collectively for restraint.
✅When investors take out loans that are 100 times the funds available for the purchase of shares, little is said about the emotional basis of this decision (greed)
✅When investors invest in the bonds on which one can earn hundreds of percent, there is no general anxiety about their emotions.
✅When investors buy shares of companies, after announcing their change to the most-fashionable sector, there is also little talk about restraint
✅When investors (but also investment funds are turning the phenomenon up), they buy the participation units of funds belonging to a high-risk category into power, few people pay attention to emotions.
So why - to hell heavy - only a little bigger than the average drop causes so absurd conclusions of analysts and market participants.
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good post mate!!