thats why many books advice to trade in smaller steps. dont go with a gut feeling, set a goal and stick to it.
the biggest impacts to our psychology? maybe the media, the news, the rumors.
we read something and anticipate that it will move 'others' and so we act on our own.
we do it, but we have no idea what it should mean. what should a musk tweet mean to a price? 3%? 10%? what should india banning crypto mean?
I agree with you, purely trading based on our gut feeling is wrong. Emotions are going to take over our decision making and we won't trade optimal anymore. While it is important to follow the media and see what other traders are doing, we need to make our decisions with our own goals. It is better sometimes to swim against the flow, instead of just following everybody. If we just follow others, we will never sell at the highest point, or buy at the lowest point, we will always leave profits to other people to be picked up. If we have our own trading goals than it is much easier to trade on those rules instead of just a feeling.