Why Emotional Control Matters

Most blowups aren’t from strategy— they’re from over‑sizing, revenge trading, and ignoring rules under stress. The solution is to make good behavior easy and bad behavior hard using routines and constraints.

Common Emotional Traps

Cognitive Biases — Name & Neutralize

• Confirmation bias: ignoring contrary evidence → Use a checklist that forces bear/bull evidence.
• Recency bias: over‑weighting the last outcome → Base size on plan, not recent wins/losses.
• Gambler’s fallacy: “Due” for a win → Treat each trade as independent; stick to risk per trade.
• Anchoring: fixating on entry price → Manage by current structure, not your anchor.

Pre‑Trade & Post‑Trade Routines

Guardrails — Make Bad Decisions Expensive

• Max risk per trade: ≤ 1% (0.5% for scalps).
• Max daily loss: 2–3R → platform alert & walk‑away rule.
• Trade limits: e.g., ≤ 3 trades/day; no “one last trade”.
• Cool‑off rule: 20–30 minutes after any 2 consecutive losses.
• Time windows: trade only during planned sessions.
• Environment design: hide watchlists outside plan; disable phone notifications.

In‑the‑Moment Tools (When Emotions Spike)

• 90‑second reset: inhale 4s, hold 4s, exhale 6s × 8–12 cycles.
• CBT reframe: write the thought → challenge it → replace with process statement (e.g., “My edge plays out over 50 trades”).
• State interrupt: stand up, 10 squats or short walk, fresh water.
• One‑click exit: pre‑bind hotkey to flatten positions if you feel tilt.

Tilt Protocol — Emergency Plan

1. Hit daily loss cap or detect revenge impulse.
2. Immediately disable one‑click trading; flatten risk.
3. Activate 24‑hour trading ban (calendar block + platform lock if possible).
4. Journal the trigger within 15 minutes; write 3 prevention steps.
5. Resume only after sleep + next‑day review with accountability partner.

Psychology Metrics to Track

Worked Scenarios — What to Do

Scenario 1 — Missed the move (FOMO)
Action: No chase. Set alert at pullback zone; if no pullback, journal "missed" and move on. Take a 60‑sec reset.

Scenario 2 — Two losses back‑to‑back
Action: Cool‑off 30 minutes; review if rules were followed. If yes, variance; if no, stop for the day.

Scenario 3 — News surprise spike
Action: Flatten. Re‑assess after spreads normalize; trade only if a fresh setup forms with defined risk.

Templates — Copy/Paste Checklists

Pre‑Trade Checklist
[ ] Calendar checked (no high‑impact in next 30 min)
[ ] HTF bias + key levels aligned
[ ] Entry trigger per plan; SL/TP/partials set; 1R defined
[ ] Size calculated; correlation checked
[ ] Emotion score ≤ 3; if ≥ 4 → pause

Post‑Trade Checklist
[ ] Journaled within 15 min with screenshots
[ ] Rule compliance % recorded
[ ] Lessons noted; next action defined

FAQ

Q: How do I stop moving my stop?

A: Pre‑commit: once set, only move to reduce risk (to breakeven/structure). Any widen = rule break → trading pause.

Q: I get bored and overtrade. Suggestions?

A: Restrict time windows; use alerts; step away between setups; cap daily trades; add a non‑screen activity during slow times.

Q: Should I trade after a big life stressor?

A: Prefer not. Use a personal “fitness to trade” checklist; if score is low, stand down for the day.

Next Steps

Implement the guardrails today: set platform alerts for max loss, create pre/post checklists, and recruit an accountability partner. Track psychology metrics weekly and iterate your routines alongside your strategy.