Emotional Biases
Decisions influenced by strong emotions like fear or greed.
Beginner-friendly explanation
Emotional biases are mistakes caused by our feelings. When you panic or want to win fast, you often make poor choices. Example: You see a big drop, panic sell everything… and the market bounces back. That’s emotional bias.
Intermediate-level insight
These biases include fear of missing out (FOMO), loss aversion, or greed. They often cause irrational entries or exits. Example: You enter a crypto just because it's pumping, without a plan. That’s FOMO—common emotional bias.
Advanced perspective
Emotional biases reflect impaired emotional regulation under stress. They distort probabilistic judgment, time horizons, and risk management. Emotional neutrality is built through repetition, mental conditioning, and statistical detachment. Example: A trader automates his strategy to remove human input: he knows emotions distort execution, especially after big wins or losses.
Trader Psychology & Behavior
emotions, emotional bias, fear, greed, panic, FOMO, loss aversion, impulsiveness, mindset