Overtrading – participating in an excessive number of trades, often driven by emotions, impatience, or the desire to quickly recover from losses, leading to a range of negative outcomes such as a significant drop in profitability and increased stress and burnout.
Fear – not opening positions because you are always afraid of losing money – accept losses, they are part of the learning process – without taking risks, you won’t gain any rewards.
Greed – not closing positions when you are in significant profit.
Impulse – making quick, often emotional decisions without thoroughly analyzing the situation or following a well-defined plan.
Trading plan – executing the entire process to understand the steps required to make a trade – a cold analysis based on statistics.
Risk management – opening trades with 1-5% of your capital depending on the favorability of the levels – never going all in – having a hedge in case of failure.
Discipline – consistently following the set of rules and strategies you’ve established for yourself, regardless of emotions, market volatility, or external pressure – not taking trades that don’t align with your plan.
Patience – waiting for the right opportunities to present themselves and sticking to your trading plan, without rushing to enter or exit trades based on emotions or impatience – yes, you may wait days, weeks, or even months for the price to reach your level, never rush.
There’s no need to trade out of revenge, rush to multiply your money, or compare yourself to others.
