In business, sunk costs are costs that already have been incurred and cannot be recovered. For example, an investment that already has been spent on research for a new technology is a sunk cost. The sunk cost effect is the tendency for people to consider the amount of money that already has been spent—the sunk costs—when making decisions. Say the ACME Company has...
I will do a breakdown of each feeling and how it can affect you and your trading.
These are snippets from an incredible author, Curtis Faith and his book Way of The Turtle. There are some incredible lessons in there, one of the most important is understanding emotions and how they affect our trading decisions.
The below feelings and effects can be used to...