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🎯 Trading Psychology Pack: 📊 Self-assessment (10 min) 📚 Foundations course 🧠 8 psychological patterns that sabotage profits Start here: lukearden.com/b/trading-psyc…

At 2:37 PM on a Tuesday, I lost 38% of my trading account in a single day. Not because the market was difficult, but because psychological patterns hijacked my decision-making. Loss aversion kept me in failing positions, revenge trading drove oversized bets, and confirmation bias…

# The Check-In Procedure Most traders obsessively monitor price action but completely neglect monitoring their own psychological state during positions. The result? Gradual psychological drift that leads to: • Moving stops without analysis • Obsessive position checking •…

Assess how your psychological state varies by energy level, confidence, and focus capacity. Map these dimensions to understand when you're most vulnerable to destructive patterns. —Appendix I: Psychological Trading Plan Template, The Psychology of Trading Losses

Document weekly psychological pattern frequency: Loss aversion activations, revenge trading incidents, overtrading occurrences. Track intervention effectiveness to identify which management approaches work for your specific patterns. —Appendix B: Trading Journal Templates, The…

Rate your emotional recovery capacity on a 1-5 scale: "After experiencing losses, I can typically return to normal emotional state within a short period." Low scores predict vulnerability to revenge trading patterns. —Appendix C: Emotional Resilience Assessment, The Psychology of…

Sleep deprivation creates a 40% reduction in working memory capacity and significantly deteriorates emotional resilience. Even moderate sleep loss impairs the cognitive functions essential for trading decisions. —Appendix L: Physical Foundation for Trading Psychology, The…

Track psychological patterns like loss aversion, revenge trading, and overtrading with the same precision you track P&L. Weekly pattern frequency assessments reveal which psychological vulnerabilities need immediate attention. —Appendix B: Trading Journal Templates, The…

Your psychological trading plan should include daily state optimization protocols, pre-market mindset practices, and post-session integration routines. Morning psychological preparation is as important as technical analysis. —Appendix I: Psychological Trading Plan Template, The…

🧠 Most traders calculate position size based on technical stops and account percentages. They're missing the most variable component: their own psychological capacity to handle the trade. A 1% risk position can feel like 3% when you're stressed, tired, or coming off losses. 🧵…

Catastrophic losses often become the catalyst for unprecedented growth when properly processed. The devastation forces comprehensive reassessment that creates stronger systems and deeper self-knowledge than incremental learning ever could. —Chapter 11, The Psychology of Trading…

Risk threshold shifting occurs when losses unconsciously alter your position sizing. You take bigger risks to recover faster or smaller risks from fear—both destroy consistency. Systematic position sizing prevents emotions from hijacking your risk management. —Chapter 5, The…

Confirmation bias makes you seek information that supports your existing positions while dismissing contradictory evidence. The more you need to be right, the less likely you are to see what's actually happening. —Chapter 8, The Psychology of Trading Losses

The sunk cost trap transforms reasonably sized positions into account-threatening disasters through seemingly logical incremental decisions. Each additional investment increases the psychological need to justify previous ones. —Chapter 10, The Psychology of Trading Losses

Emotional hijacking occurs when stress hormones literally reduce blood flow to your prefrontal cortex—the brain region responsible for rational analysis. You can't think clearly when your amygdala is running the show. —Chapter 6, The Psychology of Trading Losses

Action bias makes doing nothing feel like failure, even when patience preserves capital. The best traders recognize boredom as valuable information: your criteria aren't being met. —Chapter 7, The Psychology of Trading Losses

Revenge trading hijacks your decision-making by replacing systematic execution with emotional vindication-seeking. You're no longer trading a strategy—you're responding to a wounded ego. —Chapter 4, The Psychology of Trading Losses