Forex

You may feel intense joy when prices move in your favor. You may feel
angry, depressed, and fearful when prices go against you, and you may anxiously
wait to see what the market will do to you next. Traders join crowds
when they feel stressed or threatened. Battered by emotions, they lose their
independence and begin imitating other group members, especially the group
leader.
When children feel frightened, they want to be told what to do and look
up to their parents. They transfer that attitude to teachers, doctors, ministers,
bosses, and assorted experts. Traders turn to gums, trading system vendors,
newspaper columnists, and other market leaders. But, as Tony Plummer brilliantly
pointed out in his book, Forecasting Financial Markets, the main
leader of the market is price.
Price is the leader of the market crowd. Traders all over the world follow
the market's upticks and downticks. Price seems to say to traders, "Follow
me, and I will show you the way to riches." Most traders consider themselves
independent. Few of us realize how strongly we focus on the behavior
of our group leader.
A trend that goes in your favor symbolizes a strong, bountiful parent calling
you to share a meal or risk being left out. A trend that goes against you
symbolizes an angry, punishing parent. When you are gripped by these feelings,
it is easy to overlook objective signals that tell you to exit. You may
feel defiant, or bargain, or beg forgiveness-while avoiding the rational act
of accepting your loss and getting out of a losing position.