Trading psychology covers the mental side of trading: how emotions such as fear, greed, hope and regret, as well as habits and thinking errors, influence decisions in the market. Two traders using the same strategy can achieve very different results because one sticks to the rules while the other hesitates, chases prices or moves a stop-loss in the hope of a turnaround.
The scientific background is provided by behavioural finance, which studies why market participants regularly deviate from purely rational behaviour. Knowing typical patterns such as loss aversion or overconfidence is the first step towards recognising them in your own trading.
In practice, discipline is supported by clear rules: a written trading system, predefined stop rules and consistent money management leave less room for impulsive decisions, and a trading journal helps to identify recurring mistakes. The entries in this section are not an exhaustive list.