Emotion can be a very destructive force particularly when it starts to dictate our financial pathways. One of the first things Forex traders learn before stepping onto the trading floor is how to harness their emotions. Without doing so, they risk making costly mistakes that can gradually undermine belief in their own abilities and prevent them acting when they need to. Fear is possibly the most destructive emotion of all. Although it can be our best friend allowing us to kick into “fight or flight” mode when facing real danger, it can also become an enemy when it leads us to make irrational decisions for fear of losing something we’ve created an attachment to.
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