Stocks

Trading Psychology

The biggest risk sits in your chair.

Losses hurt about twice as much as equivalent gains feel good. That asymmetry makes traders cut winners early and hold losers forever.

Other regulars: revenge trading after a loss, FOMO entries into extended moves, and confusing a lucky outcome with a good decision.

The antidote is process: written rules, pre-set stops, a fixed risk per trade, and a journal that grades decisions rather than results.