How Feelings Influence Your Trading by Claudio Demb
Trading is emotionally demanding. Our feelings dictate our actions and without our being aware of it, tend to make us trade irrationally. The first step in battling emotions is to be aware of them.
Thoughts, feelings, and actions—three distinct and separate entities, yet they have a circular relationship. You see this kind of relationship in everyday life. Think about it—you feel anxious, which then leads you to worry about all the possible bad outcomes. Or perhaps you detect some physical pain and feel something is wrong with your body, which then makes you think you may have a serious illness. So you see how sometimes when you think about something, it triggers a particular feeling ...