Trading success hinges not just on strategy, but on managing emotions and cognitive biases that sabotage decisions. Fear, greed, and FOMO (Fear of Missing Out) intensify during volatility, leading to impulsive trades, while biases like confirmation bias (favoring information that supports your view) or loss aversion (holding losers too long) distort judgment. To maintain discipline:
1. Acknowledge Emotional Triggers – Recognize when fear (exiting early) or greed (over-leveraging) is driving your actions. Pause and refer to your plan.
2. Predefine Rules – Set strict entry/exit criteria, position sizing, and stop-losses to avoid emotional deviations.
3. Journal Trades – Track not just outcomes, but your mindset during each trade to identify recurring biases.
4. Embrace Volatility as Opportunity – Stick to strategies that work in chaotic markets instead of chasing price swings.
5. Limit Exposure to Noise – Avoid overreacting to news or social media hype that fuels FOMO.
Discipline means accepting losses as part of the process and letting winners run according to plan—not emotions.
