14 Emotional Stages You'll Go Through During a Trade!





Trading psychology is something not simple. It is not easy to be emotionless while you are risking your hard earn money. On  stocktrader.com I have found a very interesting article about the stages of our emotions during a trade.  There are 14 stages and just like a roller coaster and the price of any stock of course are going up and down.




  1. Optimism – A positive outlook encourages us about the future, leading us to buy stocks.
  2. Excitement – Having seen some of our initial ideas work, we begin considering what our market success could allow us to accomplish.
  3. Thrill – At this point we investors cannot believe our success and begin to comment on how smart we are.
  4. Euphoria – This marks the point of maximum financial risk. Having seen every decision result in quick, easy profits, we begin to ignore risk and expect every trade to become profitable.
  5. Anxiety – For the first time the market moves against us. Having never stared at unrealized losses, we tell ourselves we are long-term investors and that all our ideas will eventually work.
  6. Denial – When markets have not rebounded, yet we do not know how to respond, we begin denying either that we made poor choices or that things will not improve shortly.
  7. Fear – The market realities become confusing. We believe the stocks we own will never move in our favor.
  8. Desperation – Not knowing how to act, we grasp at any idea that will allow us to get back to breakeven.
  9. Panic – Having exhausted all ideas, we are at a loss for what to do next.
  10. Capitulation – Deciding our portfolio will never increase again, we sell all our stocks to avoid any future losses.
  11. Despondency – After exiting the markets we do not want to buy stocks ever again. This often marks the moment of greatest financial opportunity.
  12. Depression – Not knowing how we could be so foolish, we are left trying to understand our actions.
  13. Hope – Eventually we return to the realization that markets move in cycles, and we begin looking for our next opportunity.
  14. Relief – Having bought a stock that turned profitable, we renew our faith that there is a future in investing.

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