Mindset & Trading Psychology
The difference between a profitable trader and an unprofitable one often comes down to psychology. Journaling helps you recognise patterns of behaviour that sabotage your results. In this section we explore common pitfalls and provide tips for building a resilient trading mindset.
Overcoming FOMO
Fear of missing out (FOMO) drives traders to enter positions late in a move, often at poor prices. To beat FOMO, define entry criteria ahead of time and stick to them. Accept that you cannot catch every move; there will always be another opportunity. Using limit orders instead of market orders can also reduce impulsive behaviour.
Revenge Trading
Revenge trading occurs when you try to immediately win back losses after a losing trade. This emotional response often leads to taking unplanned trades and increasing risk. The best antidote is to step away after a loss, review your journal to understand what went wrong, and only return when you have a clear plan. A cooling off period reduces impulsive decision making.
Discipline & Consistency
Sticking to your trading plan requires discipline. Use your journal to document every trade, including the rationale and whether you followed your rules. Over time you will see how breaking rules impacts your results. A consistent process – from analysis to execution – builds confidence and reduces the stress associated with trading. Remember that small, consistent gains can compound into significant returns.
Managing Stress & Taking Breaks
Trading can be mentally taxing. Burnout leads to sloppy decisions and emotional reactions. Incorporate regular breaks into your routine, maintain a healthy lifestyle and engage in activities outside of trading. Journaling your mood or stress level alongside trade entries can help you identify when emotions are influencing your decisions.
Mindset Journal
Reflect on your emotional state before and after each trade. Writing down your thoughts helps you recognise FOMO, greed or fear and adjust your behaviour over time. Your entries are private and stored locally in your browser.
Confession Box
Write down anything you need to get off your chest – a mistake, a win, a wild trade idea. Check the box to share anonymously with the community or leave it unchecked to keep it private.