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Trading psychology

Behavioural concepts that affect discretionary decision-making.

• Loss Aversion & Prospect TheoryA behavioral finance principle demonstrating that the psychological pain of losing is twice as powerful as the pleasure of an equivalent gain. It is the root cause of systemic interference.
• FOMO (Fear of Missing Out)The urge to enter a trade because price is moving without you. The most expensive emotion in retail trading — chases tops and capitulates at bottoms.
• Confirmation BiasThe tendency to seek and remember information that supports an existing belief while ignoring contradicting evidence. Lethal for trade thesis maintenance.
• R-Multiple Journals — Engineering Expectancy from Trade-Level StatisticsWin rate × avg win R vs avg loss R, autocorrelation of streaks and sufficiency sample sizes for inference.

Educational glossary content only — not investment advice.