Trading Psychology

Your biggest enemy in trading is yourself.

Common Emotional Traps

FOMO (Fear of Missing Out)

Problem: Buying at peaks because "everyone else is making money"
Solution: Stick to your strategy, wait for your setup

FUD (Fear, Uncertainty, Doubt)

Problem: Panic selling during dips
Solution: Have a plan before entering trades

Revenge Trading

Problem: Doubling position size after a loss to "make it back"
Solution: Take a break after losses, stick to risk rules

Overconfidence

Problem: Taking huge risks after winning streak
Solution: Every trade is independent, maintain discipline

The Trader's Mindset

Accept Losses

• Losses are part of trading
• Aim for 55-60% win rate
• Focus on risk-reward, not win rate

Remove Emotion

• Trade the chart, not your feelings
• Use stop-losses automatically
• Pre-plan entries and exits

Journal Your Trades

Record:
- Entry/exit reasons
- Emotions felt
- What you learned
- Mistakes made

Meditation & Breaks

• Step away after 3 consecutive losses
• Don't trade when emotional
• Exercise and sleep well

The 10 Trading Commandments

1. Never risk more than 2% per trade
2. Always use stop-losses
3. Let winners run, cut losers quickly
4. Don't revenge trade
5. Trade your plan, not your emotions
6. Accept that losses happen
7. Focus on process, not profit
8. Keep a trading journal
9. Take breaks regularly
10. Continuous learning

Success Metrics

Track these instead of just profit:
- Rule adherence (did you follow your plan?)
- Risk-reward ratios
- Entry timing accuracy
- Emotional control rating (1-10)

Remember: Discipline beats talent in the long run!