✨Characteristics of
Euphoria in trading✨
✒️Excessive confidence:
Belief that prices have no limits and one is infallible.
✒️Underestimation of risks:
Dangers are minimized and larger-than-normal trades are taken.
✒️Abandonment of strategy
One stops following the established trading plan.
✒️Feeling of invincibility:
Perception that everything will go well, regardless of decisions.
✒️Precursor to large losses:
Often, this state precedes sharp market corrections and significant losses.
How to manage it
✒️Self-control and discipline:
It's crucial to maintain discipline and follow a solid risk management plan.
Recognize the emotion: Understand that it is a natural but dangerous reaction to gains.
✒️Stay calm:
Take breaks and avoid trading in an euphoric state to make informed decisions.
✒️Focus on the process:
Concentrate on executing the strategy, not on the euphoria of past gains.
Euphoria is an emotional state that distorts the reality of the market and can be more harmful than fear, as it prevents the necessary caution to trade consistently.
