Trading psychology refers to the mental and emotional aspects that influence a trader’s decisions and behavior. It includes managing emotions like fear, greed, hope, and regret, which can impact trading performance. Fear can cause hesitation or early exits, while greed might lead to overtrading or ignoring risk. Discipline, patience, and emotional control are key traits of successful traders. Developing a solid trading plan, sticking to it, and using risk management strategies help maintain a clear mindset. Understanding trading psychology is essential because even with a good strategy, poor emotional control can lead to consistent losses and poor decision-making.
