Trading, in essence, is a battle with your own emotions.

I’ve seen too many people—feeling on top of the world when making profits, panicking when facing losses. Excitement, fear, greed—these three emotions take turns, pushing rational analysis far into the background.

Once emotions take over, what happens if you ignore charts and data and just trade on instinct? Several pitfalls await:

**Cognitive Biases**. Either inflated to the sky, thinking you're a trading genius and adding to positions madly; or extremely timid, not daring to act even when opportunities arise. Both extremes are deadly.

**Impulsive Actions**. The consequence of lack of discipline is—failing to cut losses when needed, chasing rises when you shouldn’t. Losses often double in such situations.

**Loss Aversion**. A small loss scares you out of the market, and you never dare to open a position again. Short-term volatility is amplified infinitely, causing you to miss subsequent opportunities.

# The Emotional Rollercoaster of Traders

Although everyone's mindset differs, most traders go through these 14 typical emotions. They form a cycle—from excitement and euphoria, slipping into anxiety and panic, and finally sinking into frustration and confusion.

Here are two of the most typical:

**Euphoria Phase**: Several profitable trades in a row make you feel invincible. This is the most dangerous moment—you might think you can see through the market, start ignoring risk controls, and open larger positions. Overconfidence is a sign of upcoming losses.

**Fear Phase**: The market suddenly reverses, and your mentality collapses. Not based on analysis or judgment, but driven by panic—you either blindly cut your position or become too scared to act at all. Fear can cause you to exit prematurely or simply...