#MarketPullback
Reality: Markets do not stick to your expectations, and the opposite trend may continue for months. Holding onto a losing trade without a clear exit plan often leads to wiping out the account.
- Treatment: Using a Stop Loss is a necessary defensive tool, not a sign of weakness. Accepting a small loss is better than waiting for the unknown.
Overconfidence in instantaneous predictions
- False belief: "This trade is guaranteed!"
- Reality: There is no guaranteed trade in the market. Even the strongest analyses remain probabilities. Making decisions based on emotion or haste can wipe out capital in minutes.
- Treatment: Create a Trading Plan before entering the market, defining your entry point, profit target, and stop loss. Be prepared for the possibility of the trade failing.
Emotional drift in repeated buying