Trading Psychology & Risk Management

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🧠 Part 1: Trading Psychology
Trading psychology refers to the emotional and mental aspects that influence trading decisions. It includes traits like discipline, patience, confidence, and emotional control.
✅ Traits of Successful Traders
1. Discipline
Following your trading plan no matter what.

Not deviating due to emotions or "gut feelings".

2. Patience
Waiting for the right setup to occur.

Not chasing trades or forcing market entries.

3. Emotional Resilience
Being able to handle losses without emotional reactions.

Not reacting with fear, revenge, or frustration.


💼 Part 2: Risk Management
Risk management ensures that you survive and thrive in trading, even when the market moves against you. It’s not about avoiding losses — it’s about limiting them so that no single trade can wipe out your account.
🧮 Core Concepts in Risk Management
1. Risk Per Trade
Limit risk to 1–2% of total capital per trade.

For example, on a ₹1,00,000 account, risk only ₹1,000–₹2,000 per trade.

2. Position Sizing
Use your stop-loss level to determine how many shares/contracts to trade.

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