Trading psychology: process over outcome
7 min readLesson 36
Fear, greed, tilt and the habits that keep decisions consistent.
Most traders know what they should do. The difficulty is doing it after three losses, or when a trade is deep in profit and every instinct says to grab it.
Judge decisions, not results
A trade that followed every rule and lost was a good trade. A trade that broke the rules and won was a bad trade that got lucky, and luck reinforces bad habits. Score each trade on one question: did I follow my plan?
The four common traps
| Trap | What it looks like | Antidote |
|---|---|---|
| Fear | Skipping valid setups after losses; closing winners far too early | Fixed risk you are comfortable with; pre-set targets |
| Greed | Oversizing after wins; moving targets further | Same size every trade; targets set before entry |
| Tilt | Revenge trades to win back a loss | A hard rule: stop after the personal daily limit |
| Boredom | Forcing trades in quiet markets | Trade only your session; no setup means no trade |
Practical habits
- Pre-session check. Am I rested, focused and calm? If not, trade smaller or not at all.
- Breaks. After two consecutive losses, step away for 30 minutes.
- One rule at a time. Pick a single habit to improve each week.
- Separate the account from the ego. A losing day is information, not a verdict on you.
Remember the clock is not running
Most programs have no time limit. Missing a day costs nothing. A forced trade can cost the account.
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