Hi All 🖖
9 trading psychology mistakes and how to solve them...
1. Chasing trades!
Error: Entering trades late just because stocks are changing quickly.
Solution: Don’t react, but plan. Only take trades that meet your setup and risk criteria.
2. FOMO (fear of missing out)!
Error: Entering trades because 'everyone else is in the game.'
Solution: Remember discipline over excitement. There will always be another transaction, another opportunity. You don't need to catch them all, just the right ones.
3. Excessive transactions!
Error: Making too many transactions out of boredom or the need to 'do something'.
Solution: Limit daily transactions or only those that are important. Less often means more.
4. Revenge trading!
Error: Trying to immediately recover losses with larger, riskier trades.
Solution: Take a break after a loss. Allow emotions to settle before re-engaging.
5. Hesitating before entry!
Error: Freezing good settings out of fear of loss.
Solution: Trade smaller sizes until you gain confidence. Focus on sticking to your resolutions, not winning every trade.
6. Ignoring the trading plan!
Error: Making decisions based on emotions rather than your rules.
Solution: Write down your plan before each trade... Entry, stop, target, and then stick to it.
7. Ending too early!
Error: Selling as soon as you see green because you're afraid of losing profits.
Solution: Use partial exits or trailing stops. Let the system work.
8. Allowing losers to completely drop!
Error: Holding onto losing trades, hoping they will bounce back.
Solution: Respect your stop-loss. Small losses are part of the game, and large losses can be avoided.
9. Tying your worth to results!
Error: Feeling like a failure after a losing day.
Solution: Separate your identity from profits and losses. Success in trading is about consistency over time, not short-term results.
I hope this helps you a bit...😉
Have a great day!😎🚀
