Master the Mental Game
Trading Psychology
Overcome psychological barriers preventing 95% of traders from succeeding
80% of success depends on mindset
Why Psychology Matters
95%
of traders lose
70%
of losses from emotions
3x
loss pain vs profit joy
Psychological Traps
Fear of Missing Out (FOMO)
Entering trades late fearing missing profit
Symptoms
- Jumping in without analysis
- Entering at tops
Solution
Markets offer daily opportunities. Missed chance beats certain loss.
Revenge Trading
Trying to recover losses by increasing risk
Symptoms
- Doubling size after loss
- Trading while angry
Solution
After two losses, stop for the day.
Overconfidence
Believing you can't be wrong after wins
Symptoms
- Ignoring warning signs
- Not using stop loss
Solution
Treat each trade independently.
Loss Aversion
Holding losing trades too long
Symptoms
- Moving stop loss away
- Closing winners early
Solution
Set stop loss before entry, never change it.
Building Discipline
Trading Plan
- Define pairs
- Write entry rules
- Risk percentage
Daily Routine
- Pre-market analysis
- Review news
- End of day review
Risk Rules
- 1-2% per trade
- Stop after 3 losses
- No news trading
Managing Drawdowns
1
Acknowledge
Admit the strategy failed
2
Break
Step away from screen
3
Analyze
Review trades objectively
4
Adjust
Correct behavior, continue
When to Take Breaks
⚠️After 3 consecutive losses
⚠️When feeling angry
⚠️When you can't sleep
⚠️After large unexpected win