Euphoria is an intense feeling of excitement and extreme positivity. In trading, euphoria can occur after experiencing a series of successful trades or an unexpected profit. It can lead to overconfidence and taking undue risks, which could result in substantial losses. Imagine a trader who experiences a sudden surge in profits from a successful trade. The euphoria of this financial gain can create an overconfident mindset. They may begin to ignore caution, deviate from their trading plan, and make impulsive decisions driven by the thrill of success rather than careful analysis.👌
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