Perhaps everyone will recognize themselves...

The article is based on real events, the character is fictional 🫣

This is nothing but the impulsive trading syndrome: why you can't stop and how to fix it.

You've probably encountered this: first, you tell yourself that you won't enter a trade, but a minute later you press 'Buy'. Then you promise yourself that this is the last trade, but you dive back into the market.

The price falls – you fear missing the moment. The price rises – you're back in the game. In the end, there's a loss on the balance, nerves on edge, and a feeling inside that you've done something foolish again.

If this is about you – welcome to the club of those who have encountered the impulsive trading syndrome.

This is one of the most treacherous traps that most traders fall into, especially in the early stages.

What is impulsive trading and why is it a problem?

Impulsive trading is trading without a plan, based on emotions, under the influence of fear and greed. You enter trades spontaneously, without a clear calculation, and then either panic-close the position or increase the lot, hoping to 'make up for it'.

How it looks in practice:

You watch the price go up and fear missing the moment. You enter a trade without a plan → the market turns → you close the position at a loss.

You told yourself 'that's it, I'm not trading today', but after 5 minutes you see 'the perfect entry' → you enter again → you incur a loss again.

You set a stop, but the price hasn't reached it yet, and you've already closed the trade at a loss because 'screw it, what if it goes against me'.

All this is not strategy, but excitement.

And excitement in trading = loss.

Why do we trade impulsively?

Impulsive trading is not just a bad habit, it's biology. Our brain is designed in such a way that emotions often overpower logic.

Main reasons:

1. FOMO (Fear of Missing Out).

You see growth – you fear not keeping up. You see a drop – you urgently want to buy cheaper. In the end, you enter not by strategy, but by emotions.

2. Excitement and the desire to 'make up for it'.

After a stop, you want to recover the loss. In the end, you dive back into the market, increase the size of the trade, and… lose even more.

3. Lack of a clear plan.

If you don't have pre-written entry and exit points, you will trade on intuition. And intuition in trading is a bad advisor.

4. The syndrome of 'just one more trade and that’s it.'

You are already in profit, but you think: 'What if I take one more to secure the result.' You enter... and lose everything you earned.

5. Low discipline.

You promise yourself not to trade, but your hands reach for the button. All it takes is one click...

Result: emotions take over → chaotic trades → losses → anger → new impulsive trades.

How to stop trading impulsively: practical advice:

1. Introduce a strict rule: do not trade without a plan.

Before each trade, you should have:

Clear entry point.

Written stop-loss and take-profit.

The reason you enter (based on strategy, not on emotions).

No plan – no trade.

2. Limit the number of trades per day.

Let's say you set a limit of 3 trades per day. Once done – close the terminal and take a break. The fewer chaotic entries, the better for the account.

3. Record your trades and emotions in a journal.

After each trade, write down:

Why did you enter?

Was the trade according to the strategy?

What emotions did you experience?

When you see how many trades were made simply 'on emotions', it will become clear where your main mistakes are.

4. Use the 5-minute rule.

If you want to enter a trade, put your phone down and wait 5 minutes.

If after this the entry still seems like a good idea – okay, but check if there is a signal according to the strategy.

If after 5 minutes the desire has faded – then it was just an emotion.

5. Turn off charts if you're done trading.

If you look at the price, your hands instinctively reach for the buttons. Finished trading – close the terminal.

The less you watch – the less temptation.

6. Work on discipline.

Trading is not just about analysis, it's about self-control. If you can't hold back and constantly press 'Buy/Sell', it means you are not managing your emotions, but your emotions are managing you.

7. Remember that the market isn't going anywhere.

Do you think that if you don't enter now, you'll miss the only chance? That's not true.

The market will be there tomorrow, the day after tomorrow, next year. But the account, if you continue impulsive trading, may run out by the end of this week.

Impulsive trading is not just a bad habit, it is one of the main reasons for account blow-ups. As long as you trade on emotions, you lose money.

Remember the main thing:

Trading without a plan = guaranteed loss.

The fewer chaotic trades, the more chances for profit.

Discipline is more important than any indicator.

If you recognize yourself in this article – it's time to change your approach. The market will punish weakness. The faster you learn to control your emotions, the faster you will start earning.

I invite you to the club #You_Crypto_Wave of those who have encountered the impulsive trading syndrome. We will conduct resuscitation 😉

#Traiding #BinanceSquareTalks #Binance #Write2Earn