Trading Psychology

Psychology is responsible for up to 80% of a trader's success or failure.

**Common psychological traps:** - **FOMO** — Fear of Missing Out (entering late) - **Revenge trading** — increasing size after a loss - **Overconfidence** — after a winning streak - **Paralysis** — fear of taking any trade

**How to stay disciplined:** - Follow your strategy every time — no exceptions - Accept that losses are part of the process - Trade small until you are consistently profitable - Take breaks after losing streaks