The social pressure to perform in a certain way can cause errors and lead to traders taking on greater amounts of risk.  Here’s where rumours can be dangerous. Rumours in trading are any type of unverified claim that can influence traders' decisions. This includes making mistakes by influencing them to enter and exit positions based on fear and greed rather than fact.

<p>The social pressure to perform in a certain way can cause errors and lead to traders taking on greater amounts of risk.  Here’s where rumours can be dangerous. Rumours in trading are any type of unverified claim that can influence traders' decisions. This includes making mistakes by influencing them to enter and exit positions based on fear and greed rather than fact.</p>

When it comes to investing or trading, your mindset is one of the most important things that play a part. How does psychology impact trading? Discover the factors that can influence financial decisions – personality, emotions and moods, biases and social pressures. We unpack these in this series, Trading Psychology, brought to you by IG.

<p>When it comes to investing or trading, your mindset is one of the most important things that play a part. How does psychology impact trading? Discover the factors that can influence financial decisions – personality, emotions and moods, biases and social pressures. We unpack these in this series, Trading Psychology, brought to you by IG.</p>

Advertisement