It is inordinate “fear” and “euphoria” that prevent us from achieving our investment goals. And, the impact of these excessive emotions can be seen across the spectrum of traders.

• The beginner who won’t put on a trade until he is certain the next trade will be a winner.
• The trader who “knows” what the market will do and as a result refuses to exit a losing position.
• The same trader who ignores market information that is contradictory to his position.
• The same trader who becomes paralysed with fear – “Dear God, just let me break even! I promise I won’t do it again!”
• The student who refuses to send in work because he doesn’t want to be told that his hours of work are “wrong”
• The trader who after a series of wins feels “he’s made it!” …and becomes reckless.