> For the complete documentation index, see [llms.txt](https://atm-day.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://atm-day.gitbook.io/docs/trading-psychology-basics.md).

# Trading psychology basics

You can have the best entry in the world — and still lose money. The problem is rarely the signal. It’s how you handle it. This page covers the core psychological principles that separate consistent traders from emotional ones.

### 1. Formulate the exit strategy before you enter

Every trade starts with a plan to get out. 

Decide before entering:

1. Target ROI (e.g. 2x, 3x, TRTP)
2. Stop-loss threshold (e.g. -30%, -50%)
3. Time-based condition (e.g. exit in 90 mins if not moving)
4. How much size you’re using

### 2. Avoid overexposure

Never size based on conviction. Size based on risk tolerance and worst-case scenario.

Ask:

1. What if this token rugs in 10 minutes?
2. Am I okay losing this amount?
3. Will it affect how I behave on the next trade?

{% hint style="info" %}
Don't enter any trade for more than 3% of your trading deposit. 
{% endhint %}

### 3. Normalize small losses

A stop-loss at -50% sounds bad, but it protects you from -95% rugs. Getting stopped out = part of the game.

The goal isn’t to win every trade — it’s to protect capital and stay in profit consistently form month to month. So earlier you understand that this one trade was a mistake — less you lose. 

### 4. Track behavior, not just outcomes

Review not only PnL, but *your own behavior*:

1. Did you enter on time?
2. Did you follow your exit strategy?
3. What caused deviation?

Track this with a simple column in your journal:

> “Did I follow my plan?” → Yes / No

### 5. Stop Trading After Emotional Events

If you:

1. Just took a big loss
2. Missed a 10x pump
3. Made a revenge trade

→ Stop.

Emotional volatility leads to poor decisions, usually disguised as “opportunities.” Take a break, review, come back neutral.

### 6. Zoom Out

It’s not about *this* trade. It’s about the next 50.

The edge is statistical. One win means nothing. One loss means nothing.

But a system that works 55% of the time — with proper sizing — can make you unstoppable.

***

### 7. Materials

#### 1.  Trade Review Template

| Trade ID | Token | Outcome (P/L) | Did I follow my plan? (Y/N) | What emotion dominated? | Mistake made? | What I’ll do next time |
| -------- | ----- | ------------- | --------------------------- | ----------------------- | ------------- | ---------------------- |
| #23      | $MEOW | +45%          | Yes                         | Calm                    | None          | Repeat this setup      |
| #24      | $SAD  | -60%          | No                          | FOMO                    | Entered late  | Only enter fresh calls |

**→  Goal:** Identify behavioral patterns behind wins and losses to improve future decision-making.

#### 2. Pre-Trade Checklist

* [ ] Am I entering this trade with a clear plan (TP + SL)?
* [ ] Have I sized my position based on risk, not greed?
* [ ]  Am I calm — or chasing?
* [ ]  Will I be okay even if I lose this trade?

**→  Goal:** Create a deliberate pause before clicking “Buy.”

#### 3. Emotional Triggers Log

After each batch of trades, write down:

* [ ] What threw me off balance?
* [ ] When did I feel FOMO?
* [ ] What actions did I take out of fear or greed?
* [ ] How did that affect the outcome?

**→ Goal:** To identify and document emotional triggers so you can control them better in the future.