Negotiation Psychology - Commercial Guide

[Igor Pereira]

Negotiation Psychology

The Invisible Pillar That Defines Success in the Financial Market

By Igor Pereira
Financial Market Analyst
Founder of ExpertFX School

Source: Investopedia & Igor Pereira

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The financial market is not only technical. He's emotional.

Trading psychology represents the mental component that influences each decision made by a trader — often more than indicators, graphs, or strategies.

In gold (XAU/USD), extremely volatile active and sensitive to institutional flow, inability to control emotions can transform a lucrative strategy into recurrent injury.

Exclusive analysis for ExpertFX School – Igor Pereira:
“The market rewards emotional discipline and punishes impulsiveness. Psychology is no complement — it is a structural basis.”

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What is Negotiation Psychology?

Negotiation psychology studies how emotions, beliefs and cognitive bias influence financial decisions.

Two forces dominate the behavior of the trader:

Greed

Fear

These emotions shape entrances, exits, position size and even permanence in the market.

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Greed: The Excess That Destroys Consistency

Greed is the intense desire for greater gains, often ignoring risk and rationality.

It manifests itself when the trader:

• Increases batch after winning sequence;

• You're late in explosive motion.

• operates assets without adequate analysis;

• Maintains profitable positions beyond the original plan;

• It assumes excessive risk seeking “a little more”.

It is common to observe this behavior in the final phases of high markets, when collective optimism masks structural risk.

In gold, this occurs mainly after impulsive movements in high liquidity sessions, such as the London–New York overlap.

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Fear: The Enemy of Correct Execution

Fear acts opposite, but equally destructive.

He takes the trader to:

• Close winning operations prematurely;

• Avoid clear opportunities for fear of loss;

• reduce the lot excessively;

• Sell in panic during abrupt falls.

During times of strong volatility — as Federal decisions Reserve or inflation data — fear can completely compromise strategic execution.

Igor Pereira highlights:
“Fear does not eliminate risk. It eliminates opportunity.”

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The Role of Repentance

Another relevant factor is repentance.

The trader loses a planned entry.
The market speeds up.
He comes in late.

Result: Discipline and loss.

This pattern is extremely common in XAU/USD due to the speed of institutional movements.

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Behavioral Finance and Psychological Vies

Negotiation psychology is widely studied in the field of behavioral finance.

This field shows that traders are not entirely rational. They operate under the influence of subconscious biases.

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Main Categories of biases

Cognitive biases

Systematic errors of reasoning generated by unconscious mental shortcuts.

Examples:

• Overconfidence;

• anchorage biases (fixed at a given price);

• Mental accounting;

• Overestimation of his own skill.

Emotional biases

Deviations caused by emotional feelings and states.

Examples:

• loss aversion;

• euphoria following gains;

• herd behaviour;

• Impulsivity after great movement.

Both compromise judgment and discipline.

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Traders who often neglect psychology:

• They hold losing positions waiting for recovery;

• They sell too fast winning positions;

• They follow crowds in assets already extended;

• Excessive operations;

• They ignore risk management;

• They operate on impulse after news.

In gold, this is amplified by high volatility and institutional liquidity movements.

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Overcoming bias isn't talent. It's method.

• objective entry and exit rules;

• defined risk management;

• Daily loss limit.

• Trade log;

• Emotional recording;

• Post-op evaluation.

Education in behavioral finance

Self-consciousness reduces repetitive errors.

Focus on the process, not the immediate profit.

Exclusive analysis – Igor Pereira:
“The market pays for consistent execution, not momentary emotion.”

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Direct Impact on the Financial Market

Psychology influences:

• size of positions;

• length of stay;

• operational frequency;

• Respect for stop loss;

• Ability to maintain strategy.

In cycles of high macroeconomic volatility, as periods of:

• interest adjustments;

• geopolitical tensions;

• Oscillations in the dollar;

• institutional movements in metals;

Emotional control becomes even more decisive.

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What to Expect from a Psychologically Ready Trader?

• Superior consistency;

• Lower exposure to impulsive risk;

• Best risk-return ratio;

• Ability to survive adverse cycles;

• Sustainable performance in the long run.

Mental tranquility solves more than 80% of operational challenges.

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Strategic Conclusion

Negotiation psychology is not a technical complement — it is the foundation of performance.

No emotional control:

• Strategies fail;

• Risk management is ignored;

• Profits are returned to the market.

With emotional control:

• Execution improves;

• risk is respected;

• Consistency is built.

Exclusive conclusion – Igor Pereira:
“The largest asset of the trader is not capital. It is mental stability.”

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Igor Pereira
Financial Market Analysis
Junior Wall Street Member – NYSE
Founder of ExpertFX School

Gold Specialist (XAU/USD), institutional structure, liquidity flow and emotional management applied to the financial market.

Negotiation Psychology - ExpertFX School.pdf