A topic that is rarely discussed and not given much importance, yet it is actually very important and extensive and can influence your decision-making, and ultimately whether your investment will be successful or not. It is good that it, like everything else, can be practiced and learned to control.

It is important to be aware that your emotions affect your decisions because then you can confront them.

Focus on the long term and the goal you have. If you have made a good plan and conducted all the research properly, and performed fundamental and technical analysis, short-term movements and extraordinary situations should not lead you to act impulsively. If emotions influence your investment decision, there is a high chance that the decision will be wrong.

Psychological influences that affect decisions can be:

-Risk aversion, where the opportunity for profit is missed due to fear of loss. Diversify and understand your risk tolerance.

-Overconfidence, which believes it can always beat the market and make the best decisions. Regularly objectively evaluate your results to avoid this influence.

-Loss aversion, where investors remain in losing positions thinking they will recover, which can lead to greater losses.Clearly define boundaries (STOP/LOSS).

-Herd behavior, where you follow others.

-Confirmation bias, where selectively seeking information that confirms your decision. Seek other opinions and strive to objectively assess.

-Emotional reactions of fear and greed, which you can best resolve by having a plan, strategy, and goal.

-Recent event bias, which is best mitigated by the long-term perspective.

-Cognitive dissonance when you realize your attitudes and behaviors do not match. It is crucial to recognize and adjust strategies.

-Hindsight bias when past events were not predictable and cannot be influenced. Make more realistic assessments for the future and move forward.

-Regret aversion—avoid potential regret, diversification, and discipline will help mitigate this bias.

A successful investor is aware of the possibility of their mistakes and the psychological impact on the decision-making process. How to mitigate and control them can be achieved through discipline, education, diversification, and seeking expert advice and assistance.