Common decision biases
Fear of missing out, loss aversion, overconfidence, anchoring and recency bias can distort decisions. Naming a bias does not automatically eliminate it.
Process over outcome
A good process can still produce a losing result. Evaluate whether the plan was followed, the evidence was documented and risk was respected.
Pre-commitment tools
Use a written checklist, defined practice hours, break rules and a journal. Do not increase size to recover losses or trade under pressure.
Healthy participation
Take breaks, prioritize sleep and responsibilities, and seek support from a trusted adult or qualified professional if trading stress becomes difficult to manage.
| Situation | Practice response |
|---|---|
| Missing a move | Record the observation and wait for a planned setup |
| Pressure after a loss | Use the written checklist; do not increase size to recover losses |
| Stress or fatigue | Take a break and prioritise sleep and responsibilities |
Worked example
A learner misses a move and feels compelled to enter late. A process-based response is to record the observation and wait for the next planned practice setup rather than chase.
Try it yourself
Write down three emotional triggers and one neutral response for each.
Independent activity
Complete a seven-day observation journal, including days with no practice trades and the reason for staying out.
For your own learning. No upload, submission or approval is required. Use demo or historical practice only.
Download journalKey terms to review
FOMO, Loss aversion, Trading journal, Discipline
Check your understanding
Answer all five questions, then check the explanations. Retry as often as you wish.
Choose one answer per question, then check your answers. You can retry; scores are not saved.
Suggested review target: 4 of 5.
Four out of five is a suggested review target. You can open any lesson regardless of your score.