Did you know? In trading, your true opponent is not the market, but yourself.

Regardless of whether the market is rising or falling, many people fail due to emotional management. This is nothing new—professional traders who make a living from trading all understand this principle. Marty Schwartz once said, "The biggest enemy in trading is yourself." It sounds harsh, but this is the reality.

There are four common psychological traps, let's break them down one by one:

**Overconfidence is the most common**. After winning several trades, people tend to get carried away. Risk control awareness loosens, positions are casually increased, and trading frequency also rises. The solution is straightforward—set a "daily profit limit" for yourself. For example, if you earn more than 5% in a day, enforce a pause, regardless of how tempting the market looks afterward.

**Fear leads to the opposite extreme**. Either close positions early or watch opportunities slip away. How to fix this? Write down all possible scenarios before trading, including response plans. This way, you won't panic or hesitate in the moment and can follow your predetermined plan.

**The most obvious sign of greed**—clinging tightly, wanting to earn every last penny. Adding positions at the end of a trend or being unwilling to take profits. Professional traders often withdraw in stages: close half at the first target level, and move the stop-loss on the remaining orders to protect gains.

**Revenge trading is the most dangerous**. After losing a few trades, there's a desire to quickly recover, but the more you chase, the more you lose, falling into a vicious cycle. The best defense is to set a "maximum daily loss"—for example, 2% of total capital—and stop immediately once reached, no questions asked.

The ultimate level of emotional management is to achieve "mechanical execution." Gill Black once said, "Trading requires both artistry and science. The scientific part is turning ideas into clear rules and then strictly following them." Besides institutional constraints, habits like meditation and exercise can also help you maintain a stable mindset.

In short, mastering this psychological framework will naturally improve your trading success rate.