Psychological Trading Traps: How to Avoid Common Mistakes
We’ve all been there – making a solid plan, feeling confident, and then suddenly, bam! Emotions take over, and things go sideways. Why does this happen? Most of the time, it's not because we lack knowledge or experience. It’s all in our heads, thanks to a few sneaky psychological traps . Common Traps We Fall Into: Overconfidence We get a couple of wins and suddenly feel like trading geniuses. Next thing you know, we’re taking huge risks, only to realize... maybe we’re not that invincible. Tip: Stay grounded. Keep learning and reviewing what’s really working . Loss Aversion Nobody likes losing. But sometimes, we’re so scared of losses that we cut winning trades too early or hold onto losers hoping they’ll bounce back. Tip: Set your exit rules and stick to them, no matter what. Following the Crowd Ever jump into a trade just because everyone else is doing it? Yep, I’ve done it too. But chasing trends without your own analysis usually ends badly. Tip: Trust your own research and st