Emotional trading can harm your portfolio; experienced trader advises against making decisions based on emotions.
From Yahoo Finance: 2025-04-05 14:53:00
Longtime stock traders experience the thrill of investment returns, but knee-jerk reactions to market downturns can be detrimental. Trader Talk host Kenny Polcari warns against letting fear influence trading decisions, emphasizing that emotions can lead to financial disaster.
Despite the looming possibility of a recession, Polcari advises traders to base decisions on strategy, discipline, and analysis rather than emotions. JPMorgan forecasts a recession in 2025, while Yardeni Research raises recession odds to 45%, sparking concerns among investors.
In a volatile market, it’s essential to separate emotions from trading actions. Chief global market strategist Kristina Hooper acknowledges the unpredictability of external factors impacting the market, urging traders to make educated decisions for long-term success.
Amid uncertainty, Polcari stresses the importance of maintaining calm and discipline in trading. He emphasizes the market rewards those who stick to their plan and punishes those who panic or chase euphoria. Traders must approach trading as a business, not therapy, to stay profitable.
Trader Talk with Kenny Polcari offers expert advice and market insights from the NYSE. Polcari’s guidance encourages traders to be disciplined and strategic, leaving emotions at the door. For the latest in personal finance news and market updates, visit Yahoo Finance for valuable resources. 1. The stock market closed at record highs today, with the S&P 500 reaching 3,500 points for the first time ever. This surge comes as investors remain optimistic about a potential coronavirus vaccine and the possibility of additional economic stimulus measures.
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Read more at Yahoo Finance: Emotional trading will destroy your portfolio if you let it: Veteran trader