Trading psychology basics

You can have the best entry in the world — and still lose money. The problem is rarely the signal. It’s how you handle it. This page covers the core psychological principles that separate consistent traders from emotional ones.

1. Formulate the exit strategy before you enter

Every trade starts with a plan to get out.

Decide before entering:

1. Target ROI (e.g. 2x, 3x, TRTP)

2. Stop-loss threshold (e.g. -30%, -50%)

3. Time-based condition (e.g. exit in 90 mins if not moving)

4. How much size you’re using

2. Avoid overexposure

Never size based on conviction. Size based on risk tolerance and worst-case scenario.

Ask:

1. What if this token rugs in 10 minutes?

2. Am I okay losing this amount?

3. Will it affect how I behave on the next trade?

Don't enter any trade for more than 3% of your trading deposit.

3. Normalize small losses

A stop-loss at -50% sounds bad, but it protects you from -95% rugs. Getting stopped out = part of the game.

The goal isn’t to win every trade — it’s to protect capital and stay in profit consistently form month to month. So earlier you understand that this one trade was a mistake — less you lose.

4. Track behavior, not just outcomes

Review not only PnL, but your own behavior:

1. Did you enter on time?

2. Did you follow your exit strategy?

3. What caused deviation?

Track this with a simple column in your journal:

“Did I follow my plan?” → Yes / No

5. Stop Trading After Emotional Events

If you:

1. Just took a big loss

2. Missed a 10x pump

3. Made a revenge trade

→ Stop.

Emotional volatility leads to poor decisions, usually disguised as “opportunities.” Take a break, review, come back neutral.

6. Zoom Out

It’s not about this trade. It’s about the next 50.

The edge is statistical. One win means nothing. One loss means nothing.

But a system that works 55% of the time — with proper sizing — can make you unstoppable.

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7. Materials

1. Trade Review Template

Trade ID	Token	Outcome (P/L)	Did I follow my plan? (Y/N)	What emotion dominated?	Mistake made?	What I’ll do next time
#23	$MEOW	+45%	Yes	Calm	None	Repeat this setup
#24	$SAD	-60%	No	FOMO	Entered late	Only enter fresh calls

→ Goal: Identify behavioral patterns behind wins and losses to improve future decision-making.

2. Pre-Trade Checklist

• Am I entering this trade with a clear plan (TP + SL)?

• Have I sized my position based on risk, not greed?

• Am I calm — or chasing?

• Will I be okay even if I lose this trade?

→ Goal: Create a deliberate pause before clicking “Buy.”

3. Emotional Triggers Log

After each batch of trades, write down:

• What threw me off balance?

• When did I feel FOMO?

• What actions did I take out of fear or greed?

• How did that affect the outcome?

→ Goal: To identify and document emotional triggers so you can control them better in the future.