Lesson 7: Mastering Your Trading Mind
You'll Learn: How to control emotions like a pilot controls an airplane
The Trader's Cockpit
What is Trading Psychology?
Managing your emotions and thoughts while trading - like a pilot staying calm during turbulence
Emotion vs Logic Balance
Fear
Greed
Excitement
Strategy
Analysis
Discipline
Emotional Danger Zones
FOMO Trading
"Everyone's making money except me!"
Result: Chasing prices → Losses
Revenge Trading
"I'll make back my losses now!"
Result: Bigger losses
Overconfidence
"I'm on a winning streak!"
Result: Risking too much
The Pro Trader Routine
Pre-Market Checklist
- Review economic calendar
- Set daily profit/loss limits
- Choose 2-3 trading pairs
Trading Session Rules
- Max 3 trades per day
- Mandatory breaks every hour
- No trading during news events
Post-Trading Review
- Journal emotions felt
- Analyze trade decisions
- Plan next day
Mental Trading Tools
The 10-Minute Rule
When emotional:
1. Step away from charts
2. Breathe deeply for 2 minutes
3. Drink water
4. Return if calm
Trading Journal
Entry Example:
"Felt anxious after loss - took break instead of revenge trading"
Mental Rehearsal
Visualize successful trades nightly
Athletes use this technique!
Psychology Checkup
Self-Assessment Quiz
After 3 losing trades, you feel:
Your best trade this week was:
Results Interpretation
Mostly first options → Good discipline!
Mostly second options → Needs mindset work
Market Meltdown Lessons
2020 Oil Crash (-300%)
Common Mistake
"It can't go lower!" → Buying dip
Psychological Lesson
Never assume "bottom" - follow price action
2021 Crypto Mania
Common Mistake
FOMO buying at all-time highs
Psychological Lesson
Bull markets don't last forever