Most trading mistakes are not analysis errors. They are emotional decisions made by someone who knew better. Naming the patterns is the first step to catching them.
The common ones
- Fear of missing out (FOMO). Price is moving without you, so you chase it, usually late and with a poor stop. If you are entering because of the move and not because of your plan, that is FOMO.
- Revenge trading. After a loss you take a hasty trade to win it back, often larger. It is one of the quickest ways to turn a bad day into a terrible one.
- Overconfidence. After a run of wins you start to feel unbeatable, loosen your rules and increase size. The market has no memory of your streak.
- Fear of being wrong. You close winners too early to "lock it in" or move stops to avoid taking a loss. Both change your results in ways your plan never allowed for.
- Boredom. Nothing is happening, so you trade anyway.
Early warning signs
Pay attention to physical and behavioural signals: a racing heart, a feeling of urgency, staring at the screen, thinking "just this once", or wanting to increase size. These are cues to stop and look at your rules.
What works
You do not beat emotions by willpower in the moment. You build structure around them:
- Rules written in advance for entries, stops and size.
- Loss limits that end the day automatically.
- A pre-trade checklist (see the free resources page) that forces a pause.
- Small size, because it is far easier to stay calm when a loss does not hurt.