Mar 9, 2021
Emotions play a role in many facets of life, and many of us experience several of them daily. You may experience pure joy and happiness when a child is born and anger when that child does something to upset you later on in life. Everyday emotions play into our decision-making. Some people avoid swimming in the ocean because a shark could bite them. They let the fear of being bitten by a shark steal the enjoyment of swimming in the sea. Some of the same emotions that drive our daily decision-making can also steer our decisions when investing in the stock market. In the world of finance, this is called emotional trading or behavioral finance.
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