Seven Deadly Sins Of Trading

Question 1

Why is understanding your emotions in trading so important.

Answer 1

The transgressions (emotions) can lead to large losses and psychologically bad habits when trading in the markets

Question 2

Gluttony

Answer 2

Habitual greed
Trading to many positions at one time
Too many assets at one time
Over trading because your bored

Question 3

Wrath

Answer 3

Extreme anger
Revenge trading
Being mad at maker that does not even know you exist leads to bad decisions

Question 4

Greed

Answer 4

Chases trades and profits
Greed causes refers to lose ore money than anything else
Leads to confirmation bias
Leads to staying too long in The trade
Turns unrealized gains into realized loss

Question 5

Sloth

Answer 5

Don’t want to do any work
Belief that trading is easy money
Don’t have the discipline to work that hard

Question 6

Pride

Answer 6

A feeling of deep pleasure derived from one own achievement

Overconfidence

Question 7

Lust

Answer 7

Feel a strong desire for something
Always have to part of every trade
Sacrifice good decisions for the thought of money

Question 8

Envy

Answer 8

A feeling of discontent and longing Roused by some else possessions
Never happy with your own earnings
Unhappy of others earnings
Desire other peoples earnings