Who this is for — Anyone who changes size after loss streaks, moves stops, trades off-plan. Gap between written plan and real behavior = measurable risk.
Psychological risk is the distance between planned process and behavior under pressure. Not «motivation» — risk management: emotion driving size and frequency can exceed any technical limit.
In plain terms — You lose from how you react — not just from the market.
Triggers and responses
| Trigger | Standard response |
|---|---|
| 3 consecutive losses | 20 min pause, size ÷2 |
| Revenge urge | Flat until tomorrow |
| Post-win euphoria | Size unchanged, no «I was invincible» |
| Fear to enter | Skip B setups, A+ only |
| Drawdown > threshold |
Codify in playbook — don't decide under adrenaline.
Discipline metrics
- % trades off-plan
- Size deviation vs target
- Daily/weekly stop respect
- Review with recurring errors
Typical mistake — Treating it as soft skill — it's quantifiable risk (extra trades × extra size).
Example — After 3 losses: pause protocol + 0.5R size. Avoids impulsive −2R trade that would breach weekly stop.
Summary card
- Triggers: list in playbook, not in head.
- Log: emotional state pre-trade in journal.
- Review: monthly plan deviation patterns.
Gold path — Risk control module. Index: Gold path.
Links
Sources
- CME Group, Download the Trade Plan — presents a written plan as a way to reduce emotional decisions.
- Investor.gov, Behavioral Patterns of U.S. Investors — describes behaviors including excessive trading, disposition effect, and selective attention to performance.
- Investor.gov, Performance Claims — distinguishes observed results, projections, and guarantees in investment decisions.