Online trading: What does psychology have to do with it?

By Boriss Gubaidulin, Admirals Africa Director The term “behavioural finance” which took hold in the 1990s examined what role emotions play in investment decision-making. Why should psychology and trading be linked? The simple answer is that we are hard-wired as humans to be emotional, and – let’s face it – when it comes to financial matters, emotional consideration come into play. In investing, the two most powerful emotions have been identified as fear and greed. So much so that CNN Business created the Fear & Greed Index to measure exactly how emotions…