Emotional Control in Trading: Overcoming Fear and Greed
Controlling emotions while trading isn’t just nice-to-have—it’s essential for survival. We’re hardwired to react with fear during market drops and greed during rallies, often sabotaging our carefully constructed plans. The solution? A rigid trading system with clear entry/exit rules and position sizing that doesn’t leave room for emotional hijacking. Combining this structure with mindfulness techniques and a detailed trading journal creates the discipline that separates successful traders from the crowd that panic-sells at bottoms. The Psychology Behind Trading Decisions Psychology lies at the heart of every trade you’ll ever make. We’re not just investors—we’re emotional beings wrestling with fear and greed in real-time. These twin forces drive even the most sophisticated traders to make decisions they’d never plan on paper. Fear and greed transform calculated investors into emotional gamblers, overriding logic when markets move. Cognitive biases are sneaky relationship-wr...