The Emotional Feedback Loop in Social Trading: A Structural Approach In the dynamic world of copy and social trading, the allure of passive

The Emotional Feedback Loop in Social Trading: A Structural Approach In the dynamic world of copy and social trading, the allure of passive gains often masks a potent psychological trap: the amplification of emotional responses. Unlike individual discretionary trading, where only your P&L is visible, social platforms expose you to the performance of others and, often, the real-time P&L of the master traders you follow. This constant external validation or comparison can trigger powerful impulses, leading to overtrading-adjusting allocations too frequently, switching masters impulsively-and revenge behavior-doubling down after a loss or chasing performance after a win. Mitigating these tendencies requires...