Trading psychology: the traps
Trading is a mental game. The market rewards patience and discipline and punishes natural human reactions. Learn to recognise the traps.
| Trap | What it looks like | Antidote |
|---|---|---|
| FOMO (fear of missing out) | Jumping into a move that has already run | Only trade your setups; there's always another trade |
| Revenge trading | Trading bigger right after a loss to win it back | Daily loss limit; a 15-minute break after any loss |
| Loss aversion | Holding losers, cutting winners early | Fixed stops and targets set before entry |
| Overconfidence | Raising size after a winning streak | Keep risk % fixed |
| Confirmation bias | Only seeing information that agrees with you | Write the case against your trade |
| Gambler's fallacy | "I've lost 5 in a row, the next must win" | Each trade is independent |
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- 🔒 Emotions as data
- 🔒 Key takeaways and quiz
GoldBot Academy is free education. Nothing here is financial advice; trading carries a high risk of loss.