🛡️ Risk & psychology · Lesson 5/7
The five mental traps
From FOMO to revenge trading. · ⏱ 5 min
- FOMO: “everyone’s making money but me” — buying the top in excitement. In 2020 hydro stocks rose daily and WhatsApp groups were full of profit screenshots — many bought right there.
- Revenge trading: trading more out of anger after a loss — bigger losses follow.
- Overconfidence: after a few wins, “I know it all” — big risk, big loss.
- Panic selling: selling at the bottom when the market drops 10%, then missing the recovery.
- Analysis paralysis: too many indicators and too much information — unable to decide.
For learning only, not investment advice.