Trading Psychology

5 Emotional Mistakes to Track in Your Journal

Your system might be profitable, but your mind might be your biggest leak. Learn to quantify the cost of emotional trading using your journal's soft data.

If you look at your history and see that 80% of your losses come from 5% of your trades, those trades are almost certainly psychological. The fix is in the journal notes.

The Difference Between Hard and Soft Data

**Hard data** is quantifiable (Entry Price, P&L, Contracts). Your dashboard tracks this automatically. **Soft data** is contextual (Your emotion, rationale, adherence to rules). Tracking soft data is how you fix *yourself*, not just your system.

5 Emotional Leaks to Quantify in Your Journal

1. Revenge Trading

The urge to immediately enter another trade after a loss to "get your money back." This always involves ignoring your setup rules and increasing risk, accelerating drawdown. **Tag it:** *#RevengeTrade*

2. Fear of Missing Out (FOMO)

Entering a trade late because you see the market moving quickly without you. FOMO trades typically occur far from ideal risk/reward levels. **Tag it:** *#FOMO*

3. Over-Sizing (Greed)

Using too many contracts/shares because you are confident in the setup or are trying to hit a P&L goal. This leads to massive volatility in your equity curve. **Tag it:** *#OverSized*

4. Moving the Stop Loss

Breaching a fundamental rule: widening your stop loss (or removing it) to avoid getting hit. This turns small, quantifiable losses into catastrophic losses. **Tag it:** *#BrokenRule*

5. Premature Exit (Fear)

Closing a profitable trade too early because you are afraid the market will turn around, sacrificing planned R:R. This kills your trading Expectancy. **Tag it:** *#EarlyExit*

The Path to Self-Correction

Once you consistently tag these psychological trades, your analytics dashboard can filter them. You will see the **exact P&L** contributed by your emotional trades.

Often, a trader's net P&L is positive *if* they remove the 5-10 trades tagged with *#RevengeTrade* or *#FOMO*. This quantification is the most powerful psychological cure.

"The journal is your therapist. The analytics are your progress report."

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