#TradingPsychology Trading psychology refers to the mental and emotional aspects that influence trading decisions. Mastering it is just as important as having a solid trading strategy. Here are a few core concepts:
Discipline – Sticking to your trading plan even when emotions are high.
Patience – Waiting for the right setups rather than forcing trades.
Fear and Greed – Two dominant emotions that can cloud judgment. Fear can prevent entry or cause early exits; greed can lead to overtrading or ignoring risk.
Loss Aversion – The tendency to fear losses more than valuing gains, which can lead to poor decision-making.
Confidence vs. Overconfidence – Healthy confidence builds from preparation, while overconfidence can lead to reckless trades.
Adaptability – Markets change, and emotional flexibility is key to adjusting strategies without panic.
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