Welcome to Trading Psychology Week
Behind every trade is a human mind—driven by emotion, shaped by bias, and tested by uncertainty. This week, we’re diving into the mental side of the markets. From dopamine spikes to fear of missing out, we’ll explore what really drives traders—and how to take back control.
Let’s trade smarter—from the inside out.
Day 1 – The Dopamine Trap: Why Trading Feels Like Gambling
Have you ever wondered why trading can feel addictive? It’s not just you—research from MIT and Stanford shows that the brain’s dopamine system is highly activated during trading, especially with fast-paced assets like crypto. This creates a feedback loop similar to gambling. Win or lose, your brain craves the rush.
Traders often fall into what’s called the “dopamine trap”, where the focus shifts from strategy to stimulation. Overtrading, revenge trading, and ignoring stop losses are often symptoms of this. To counter this, top traders implement rituals—like journaling or taking breaks after trades—to reset their brains and reduce impulsivity.
If you’re feeling the urge to trade for excitement rather than strategy, it might be time to zoom out. Are you being strategic—or just chasing a hit?
