Fear … well of course fear. But what is the other one?
In fact, tell me if I am wrong. The emotions most difficult to deal with are
1) fear of missing out on a move
2) frustration that you did miss out or got stopped out
3) fear of losing money….. IN THAT ORDER.
Trader after trader after trader tells me it is #1 that is the most troublesome i.e. causes the most losses. I have even heard a quant from a big hedge fund admit to feeling that way. (Quants have feelings?) ….
In fact, a few moments ago, I fell prey to #1 and #2 – and you know why? Because I was tired. I just finished reviewing the new self-driven workshop and I just reviewed the research that says if we are tired we take greater risks… and I guess I felt obliged to prove them right. Now I am my own self-inflicted victim of #2 because I acted out #1 because I broke my BIKB rule – and traded when I was tired.