We experience regret when we look at a decision and imagine it could have turned out differently. In the trading arena, it can be hard to escape regard. Since we can feel regret by taking action or by doing nothing. When we open a position, for example and end up losing, we can regret executing the trade.
But we can also feel regret when we let a winning trading opportunity pass by because we were afraid to take a risk. In both cases, we let our mind imagine alternative realities. In addition when we start to think that one of those imagined realities are better than the way things actually turned out, we feel regret. We actually think ‘If things had turned out differently’ I would now be in paradise’