By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Moving the stop to breakeven too early is the one rule-break that looks like discipline. It removes risk, it is recommended in countless trading guides, and on the day it costs a trade nobody can point to a mistake. The position was simply stopped out…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Overconfidence after a winning streak is the one trading-psychology problem that arrives disguised as evidence. The account is up, the last four calls were right, and the conclusion — that the read has improved — is the most reasonable thing available. It is also the…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer Analysis paralysis in trading produces a record with a distinctive shape: a small number of entries, a large number of charts examined, and a folder of screenshots of setups that were valid and never taken. The experience from inside is of being careful. One more…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com The loss aversion ego trading account problem is usually described as two forces acting on one balance. It is more accurate, and more useful, to treat it as a single compound with a specific signature. The loss aversion ego trading account compound has…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com FOMO breakout trading psychology is usually described in terms of what the trader felt, which is the least reliable evidence available about it. Feelings during a breakout are reconstructed afterwards, from the outcome, by someone who now knows whether the entry worked. What…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Trading psychological triggers are usually discussed as inventory: things you have, that should be identified, and ideally removed. The framing produces a familiar and unproductive exercise. A trader lists their triggers — losses above a certain size, gaps against a position, a particular…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com Emotional trading is the most-used phrase in this field and one of the least useful, because it names a symptom that four different mechanisms produce. A trader says they trade emotionally and means, variously: that they size up after wins, that they cannot close…
By Sofia Harchich | Trading Psychologist & Behavioral Finance Writer thewealthmirror.com Panic selling psychology is almost always written for the wrong moment. The advice arrives calm and reasonable: stay rational, zoom out, remember your time horizon, do not act on emotion. All of it is correct, all of it is written by someone at a…
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer| thewealthmirror.com Exiting trades too early receives a fraction of the attention given to holding losers, and the imbalance is not justified by the arithmetic. A loser held past invalidation costs a defined amount — the distance from the stop to wherever it was finally closed….
By Sofia Harchich | Trading Psychologist & Behavioural Finance Writer | thewealthmirror.com Why traders chase the market is a question that dissolves at the wrong timescale. Why traders chase the market looks, examined over a month, like a discipline problem: a trader who knows better and keeps doing it anyway. Examined over eleven minutes, it…
