Free Trading School · Level 6: Mindset, Plan and Next Steps
Trading psychology
Most trading mistakes are not knowledge problems; they are emotional ones. Knowing where to put a stop is easy. Actually leaving it there while price moves against you is hard.
| Emotion | What it makes you do | The fix |
|---|---|---|
| Fear | Exit winners too early, skip valid setups | Pre-set targets; small position sizes |
| Greed | Over-size, move targets, overtrade | Fixed risk per trade; daily limits |
| FOMO | Chase price after the move has happened | Only trade setups from your plan |
| Revenge | Trade bigger after a loss to "win it back" | Stop for the day after a set number of losses |
| Overconfidence | Break rules after a winning streak | Review the journal; keep the same size |
You cannot remove emotions, but you can design your process so that they have less room. Small positions, written rules and a daily loss limit do more for your psychology than any motivational quote.
If a loss would make you angry or scared, the position is too big.
Quick answers
Most trading mistakes are not knowledge problems; they are emotional ones. Knowing where to put a stop is easy. Actually leaving it there while price moves against you is hard.
If a loss would make you angry or scared, the position is too big.
Revenge trading. Revenge trading turns one loss into several. Stop and follow your daily loss limit.
Next lesson: Writing your trading plan