#TradingPsychology A Trading Psychology: Key to Success
Trading requires not only technical analysis and strategy but also a strong mindset to manage emotions such as fear and greed. Discipline is essential to follow a plan without being swayed by impulses.
Cognitive biases affect decisions: the **herd effect** leads to following the majority without personal analysis, **overconfidence** drives one to take unnecessary risks, and **loss aversion** causes the maintenance of negative positions for too long.
To strengthen the mindset, it is essential to develop resilience and evaluate trades without emotional biases. Practices like meditation and mindfulness improve the ability to react to stress, while post-trading review allows learning from mistakes and adjusting strategies.