Trading as Psychology: The Paradoxes of Trader Behavior
Every fact is a mirror for the trader. People love to recognize themselves in the weaknesses of others.
📌 1. 80% of traders close profitable trades too early — and hold losing trades too long
This is the effect of emotional equilibrium disruption: the pain of loss is stronger than the joy of profit (loss aversion).
👉 Lesson: Learn to lose — in order to start earning.
📌 2. Most traders consider themselves better than average
This is the cognitive distortion known as the "better-than-average effect" — the same illusion that causes beginners to jump into futures on the second day.
👉 Lesson: Ego destroys more deposits than the market.
📌 3. Successful traders more often acknowledge their mistakes than beginners
This is the paradox of adaptive humility. Market gurus are the least loud, the least confident — and the most stable.
👉 Lesson: In trading, flexibility wins over overconfidence.
📌 4. Excessive control over the market causes anxiety and losses
This is the illusion of control: the trader thinks that the number of screens and the volume of charts = control over the outcome.
👉 Lesson: Your control is risk and discipline, not more monitors.