#DayTradingStrategy
9 Trading Psychology Mistakes and How to Solve Them
1. Chasing Trades
The mistake: Entering trades late just because a stock is moving fast. The fix: Don't react - plan. Only take trades that match your setup and risk criteria.
2. FOMO (Fear of Missing Out)
The mistake: Jumping into trades because "everyone else is in." The fix: Remind yourself: discipline over excitement. There will always be another trade. You don't need to catch them all - just the right ones.
3. Overtrading
The mistake: Taking too many trades out of boredom or the need to "do something." The fix: Limit trades per day or per setup. Less is often more.
4. Revenge Trading
The mistake: Trying to make back losses immediately with bigger, riskier trades. The fix: Take a break after a loss. Let your emotions settle before re-engaging.
5. Hesitation to Enter The mistake:
Freezing up on good setups due to fear of loss. The fix: Trade smaller size until you build confidence. Focus on following your process, not winning every trade.
6. Ignoring the Trading Plan The mistake:
Making decisions based on emotion rather than your rules. The fix: Write down your plan before every trade: entry, stop, target. Then stick to it.
7. Cutting Winners Too Early The mistake:
Selling as soon as you're green because you're afraid to lose gains.The fix: Use partial exits or trailing stops. Let winners work.
8. Letting Losers Run The mistake:
Holding onto losing trades, hoping they'll bounce back. The fix: Respect your stop-loss. Small losses are part of the game - large losses are avoidable.
9. Tying Your Self-Worth to Performance The mistake:
Feeling like a failure after a red day. The fix: Detach your identity from your P&L. Success in trading is about consistency over time, not short-term results.