Glossary
Trading Psychology Glossary
The patterns behind broken rules, defined in plain English — and built to be quoted.
- Revenge tradingRevenge trading is the pattern of taking impulsive trades after a loss to quickly recover money, status, or a sense of control.
- FOMO tradingFOMO trading is entering a trade mainly because a move is already happening and you are afraid of missing it, rather than because your setup is present.
- OvertradingOvertrading is taking more trades than your edge or plan calls for, often from boredom, the urge to act, or the need to make something back.
- Trading disciplineTrading discipline is the ability to follow your own plan when pressure makes breaking it feel reasonable.
- Trading psychologyTrading psychology is how emotion, belief, and state shape trading decisions.
- Trading journalA trading journal is a record of your trades and the thinking around them, kept so you can review decisions later.
- Trading planA trading plan is a written set of rules for how you trade, what you trade, your setups, entries, exits, risk per trade, and the conditions under which you stop.
- Trader self-sabotageTrader self-sabotage is the pattern of undermining your own trading despite knowing better, breaking rules you set, giving back gains, or repeating mistakes you've already named.
- Behavioral riskBehavioral risk is the risk that a trader's own emotions and state, not the market or the strategy, damage results.