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Fear
psychologyAn emotion that causes traders to avoid entering valid setups, exit winning trades prematurely, or freeze during drawdowns. Managing fear through rules-based trading is essential for consistent execution.
Related Terms
Greed
An emotion that causes traders to hold positions past their profit targets, oversize positions, or chase extended moves.
Cognitive Bias
A systematic pattern of deviation from rational judgment that affects trading decisions.
Risk Management
The overall framework for limiting losses and protecting trading capital.