Trading Psychology
Mental aspects of trading — FOMO, revenge trading, overtrading, discipline.
Trading psychology is the hardest aspect — 90% of traders have a good strategy, but poor psychology destroys it.
Most common psychological problems:
1. FOMO (Fear of Missing Out) • You enter late because "you can't miss this" • Usually means buying at tops
2. Revenge trading • After a loss, immediately open new trade to "get it back" • Leads to series of losses and emotional decisions
3. Overtrading • Trading for the "feeling of action", not because a setup exists • Fees and poor trades slowly erode capital
4. Greed • Not taking profit because "it will surely go higher" • Profit turns into loss
5. Decision paralysis • Too much analysis, you miss the entry
Solutions: