(How to eliminate bad trading habits)

🔑 Why This Matters

The biggest enemy in trading isn’t the market—it’s you.

❌ Cognitive biases trick your brain into making irrational decisions.

❌ Emotional impulses lead to FOMO, revenge trading, and over-risking.

❌ Lack of mastery means repeating the same mistakes without growth.

🚀 Elite traders recognize their biases & train their minds for precision. This guide will help you remove self-sabotaging habits and trade with discipline.

⚠️ 1. The 7 Deadly Cognitive Biases in Trading

📌 1. Confirmation Bias → Seeing only what you want to see

• You ignore bearish signals because you want price to go up.
• You seek out opinions that match your bias instead of objective analysis. ✅ Fix: Force yourself to consider the opposite bias before placing a trade.

📌 2. Recency Bias → Thinking what happened last will happen again

• You won 3 trades in a row → You assume the next trade will win.
• You lost 3 in a row → You hesitate or revenge trade. ✅ Fix: Each trade is independent. Stick to your plan, no emotional carryover.

📌 3. Loss Aversion → Fearing losses more than valuing wins

• You exit winners too early but hold losers, hoping they turn around. ✅ Fix: Predefine your SL & TP and follow them without interference.

📌 4. Overconfidence Bias → Thinking you're invincible after wins

• You start over-risking after a winning streak.
• You ignore risk management because you “can’t lose.” ✅ Fix: Treat every trade as if you just had 3 losses in a row. Stay humble.