Five common trading psychology mistakes
Overtrading, revenge trading, fear of missing out, moving the stop and ignoring the plan: how to notice them.
1. Overtrading
Taking trades because the screen is open, not because a setup is there. A daily limit on the number of trades written in your plan helps you notice it.
2. Revenge trading
After a loss, a bigger or faster trade to win it back. A rule such as stopping after a set number of losses in a day breaks the chain.
3. Fear of missing out
Entering late because a move already started. The journal often shows that late entries carry worse risk/reward than planned ones.
4. Moving the invalidation point
Widening the stop because the trade went against you turns a planned small loss into an unplanned large one. Decide the point before entering and write it down.
5. Ignoring your own plan
Most of the mistakes above are departures from a plan. A short written checklist before each trade makes the departure visible.
Use the journal as a mirror
Tag trades where you broke a rule. Comparing tagged and untagged trades is one of the clearest lessons a journal gives.
Educational content only, not investment advice. Trading involves a high risk of losing money.
Track your own trades with the Trading Journal, part of the VIP membership.
See the membership