Lesson 4 of 4

Trading Psychology

Markets are a battle of emotions. Fear and greed push traders to exit winners too early, hold losers too long, and chase revenge trades.

Staying level-headed

  • Stick to your plan even when it's uncomfortable.
  • Accept that losses are a normal cost of doing business.
  • Trade a size small enough that a single loss doesn't rattle you.
  • Step away after a big win or loss to reset.

Discipline, not prediction, is what makes trading sustainable.