TRADING · PSYCHOLOGY
Trading psychology: improve the quality of decisions.
Build routines that reduce impulsive trading, revenge behaviour, fear-driven exits and inconsistent risk-taking.
CORE CONCEPTS
What you should understand first
Use these concepts as a framework for further learning and research.
Process goals
Judge whether you followed the plan before judging the P&L.
FOMO
Missing a trade is usually cheaper than forcing a poor entry.
Revenge trading
Losses can trigger risk escalation; predefined limits help interrupt the cycle.
Recency bias
A short winning or losing streak does not automatically redefine your edge.
Routine
Consistent preparation and review can reduce decision fatigue.
Journal honestly
Record mistakes without rewriting the story after seeing the outcome.
KEEP LEARNING
Explore related FintechEdge topics
Move between related topics without losing the bigger picture.
Educational content only.
This page explains financial concepts and does not provide personalised investment or trading advice. Markets and digital assets involve risk.