How do emotions affect your condition while trading?

[Kane]

Emotions significantly impact trading decisions, often leading to irrational choices. For instance, fear can cause panic selling during market downturns, resulting in losses. Conversely, greed might drive one to hold onto a rising stock too long, risking a sharp decline. Overconfidence can lead to excessive risk-taking, while anxiety might cause hesitation and missed opportunities. Managing emotions through strategies like setting predefined limits and maintaining a disciplined approach is crucial for successful trading.