Trading psychology

Trading psychology isn't about feeling calm. It's about behaving the same way whether you're up, down, bored or scared. Rules beat willpower.

The big five traps

1. Revenge trading

Taking a fast, oversized trade after a loss to "get it back". Fix: a daily loss limit and a mandatory break after two losses in a row.

2. FOMO

Chasing a move you didn't plan because it's running without you. Fix: only trade from levels written down before the session.

3. Moving the stop

Widening the stop when price approaches it. One habit that can turn a +EV approach into a losing one. Fix: stop goes in with the entry; you may only move it toward profit.

4. Cutting winners early

Taking profit at the first wiggle because you're afraid to give it back. Fix: decide the exit plan before entry, and journal every early exit.

5. Overtrading

Trading because you're at the screen, not because there's a setup. Fix: a maximum number of trades per day, and a defined trading window.

Practical routines

• Before: mark levels, check the news calendar, write today's plan and limits.
• During: one checklist question before each entry — is this in my plan?
• After: journal every trade within an hour, while the reasons are fresh.

Your state matters

Tired, stressed, angry, or trading to pay a bill? Those are the days to trade smaller or not at all. Not trading is a position.

Quick recap

1. Name the trap you fall into most.
2. Write a rule that makes it hard to do.
3. Grade yourself on process, not P&L.