Dar es Salaam, Nov. 13 -- MENTAL state might change the way a person acts and perceives information. In todays piece, we would like to discuss 4 most widespread psychological factors that often influence the decision-making process of traders.

In particular, we will look into the role of fear, overconfidence, impatience, and loss aversion in the markets and ways to handle them.

Fear is a normal reaction to the unknown. In the stock exchange, it can be triggered by the unexpected development of events or by the loss in the value of ones position.

Sometimes fear can cause traders to liquidate their positions before time, ignore profitable situations that coincide with their strategy, or act impulsively on incomplete information. In other...