Chapter_14_Flashcards
(20 cards)
What is the emotional brain’s strategy when it can’t get its trading fix directly?
It looks for substitutes like new strategies, assets, or ‘practice trading’ to scratch the itch.
Why do traders explore random alternatives after losses or boredom?
To avoid discomfort, silence, and recommitting to their system — it’s the addiction disguised as logic.
What is the mindset difference between emotional and free traders?
Emotional traders ask ‘What else is out there?’ while free traders ask ‘What happens if I go all in on what already works?’
What triggers revenge trading on smaller timeframes?
A setup failure leads to frustration, causing traders to zoom into lower timeframes seeking a dopamine hit.
Why is changing timeframes after a loss dangerous?
It often leads to frantic overtrading, lack of structure, and emotional damage.
When are smaller timeframes not harmful?
When used with clear purpose and context — not as an emotional escape.
Why are substitutes harmful to trading progress?
They postpone real learning and keep emotional addiction alive under the illusion of progress.
What’s the danger of emotional substitutes in trading?
They seem harmless, but they delay commitment to your actual system.
What is the correct use of practice trading?
With clear structure, rules, journaling, and zero impulsivity — exactly like live trading.
What does poor ‘practice trading’ look like?
Flicking through charts, acting impulsively, trading off-system in demo.
Why do bad habits in demo still matter?
They reinforce emotional trading patterns that carry into live sessions.
What’s the key to effective practice?
Only trade valid setups, set clear goals, and treat it like live execution.
What is the real trading trap?
Using trading to meet emotional needs — to feel smart, alive, or validated.
What’s the addictive loop in bad trading?
Impulse → rush or shame → hope for recovery → promise to stop → repeat.
Why does bad trading feel like progress?
Because it mimics action and growth while keeping you stuck.
What are three steps to escape the trap?
- Recognize emotion-first trading. 2. Reject more setups as progress. 3. Wait longer and trade less.
What is the core truth of Chapter 14?
If you don’t break the emotional trap, it will break your belief in yourself.
What is Instruction 14?
Never trade to feel better — trade to execute better.
Why should you never trade to fix an emotion?
Because it corrupts your edge and turns trading into therapy.
How do you know if you’re trading emotionally?
If your motivation is relief — not alignment with your system.
