🔴 Fear, Greed & Revenge Trading: Breaking the Cycle | Trading Psychology LIVE

Summary

The session focuses on trading psychology and risk discipline rather than teaching a new strategy. The presenter argues that traders may understand a strategy yet still lose money through oversized positions, late entries, emotional exits, and repeated or unplanned trades.

Markets and instruments mentioned

• Gold: The presenter describes a session with an approximately 350-pip buying move, followed by a similar-sized selling move. The exact price context is unclear.
• Futures and CFDs: Mentioned as possible separate account types, including funded accounts.
• No individual stock tickers, ETFs, bonds, or cryptocurrencies are named.
• Trading concepts include Auction Market Theory, order flow, volume profile, and SMC. The presenter refers to VAH/VAL (value-area high/low), POC (point of control), and an LBN zone.

Trading framework and risk management

• Use a pre-trade checklist: Trade only when a setup meets predefined criteria. Focus on executing a process rather than chasing a monetary target.
• Avoid chasing late entries: If the planned entry is missed, do not enter late with a wider stop and worse reward-to-risk potential.
• Wait for confirmation: In the presenter’s order-flow example, he prefers a responsive seller or buyer on a retest rather than entering solely on an aggressive move.
• Use market context: In a sideways market, he describes looking to sell near the high and buy near the low, with the POC near the middle. Directional conditions may require a different approach.
• Define risk in money, then size the position to the stop distance: His example uses a fixed $100 risk per trade. Lot size should change with the stop distance to keep planned dollar risk consistent.
• Keep stops where the setup is invalidated: Do not tighten or widen a stop merely because of fear or greed. The stop may be 5 pips or 50 pips, depending on the setup.
• Set a realistic target before entering: He favors taking the planned target rather than holding beyond it out of greed. He says his own approach is often around 1:1 risk/reward, while noting that targets depend on the setup.
• Limit trading frequency: He recommends no more than two trades per day, favoring fewer, higher-quality trades. He also suggests stopping after reaching a daily target—for example, $300—and says that not taking another trade after a loss can help prevent revenge trading.
• Reduce risk during a losing spell: After consecutive losing days, he advises trading smaller lots. He reports a personal losing period in which he lost about 50% during the first two weeks of a month, attributing some of the damage to not reducing position size.
• Trade only during planned sessions: Choose a regular session and time window instead of trading out of boredom. The presenter cites 8 a.m.–12 p.m. as a high-volume London–New York overlap but does not specify the time zone.

Psychology and performance figures

The presenter describes an emotional cycle: FOMO and chasing → greed and oversized targets → loss → fear or avoidance → revenge trading. He says reducing trade-chasing can help interrupt the cycle.

He gives approximate win-rate benchmarks of 60–70% for scalping and 20–30% for swing trading. He argues that swing traders can remain profitable with a lower win rate if winning trades are substantially larger than losses. These are general claims from the presenter, not verified performance data.

Examples include a $100 trading account and position sizes such as 0.03, 0.05, and 0.1 lots, used to illustrate the danger of choosing size impulsively rather than setting it according to a defined risk limit.

Cautions and disclosures

The presenter warns against overtrading, oversized positions, increasing risk to recover losses, entering because of FOMO, and holding beyond a planned target.

No explicit “not financial advice” disclaimer appears in the subtitles. The session is presented as educational trading-psychology content; its numerical examples and performance figures are the presenter’s opinions or illustrations, not independently verified results.

Presenter/source: Al Shahriar Hossain Oni; The Auction Room Bangladesh.