This is a cognitive bias in which we fail to factor in our emotional state when making a judgement or decision. If you’re hot, under the influence of visceral factors (e.g., madly in love with that woman) you can’t objectively grasp how much your behavior or preferences are being driven by your emotional involvement. If you’re cold, you have difficulty “walking in your hot shoes”, that is picturing yourself in a hot state and preparing accordingly. Typically, if you’re a rational person and envision yourself being attacked verbally or physically, you will think of logical arguments how you’d disarm the other person. But in reality, you’ll be carried away by your emotional state and will be completely unprepared when it hits.
This heavily impacts decision making. If you are in a hot state, because people around you made you enthusiastic, you’ll very easily commit to future behaviors, which will make much less sense in a cold state. A related concept is Affective Forecasting Error.