14 Stages of Investor Emotions

14 Stages of Investor Emotions

Trading Psychology, The 14 Stages of Investor Emotions Efficient markets are based on the assumption that rational people enter transactions with the intent to maximize gains and minimize losses. While this theory is sound, most investors are not the purely rational robots that efficient markets rely upon. Instead, emotions – there are 14 stages of investor emotions – often cloud our decision-making and prevent us from acting in a rational manner. Knowing we can never conquer our inherent emotional biases, we should seek to understand the range of emotions we…