S3 E7 : PSYCHOLOGY OF TRADING : FEAR, GREED, PATIENCE
“Why Mindset is More Important Than Skill”
💡 First, a Secret:
Most beginners think trading is all about:
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Charts
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Indicators
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Strategies
❌ But here’s the truth:
“Your brain decides your profit — not your setup.”
Let’s break it down.
😨 Fear — The Exit Button
Imagine you buy Infosys at ₹1,500.
It drops to ₹1,470.
Even though your stop loss is ₹1,450, your brain panics.
You exit at ₹1,470 out of fear.
📉 Later, the stock jumps to ₹1,550.
You regret. You overreacted.
Fear makes you exit too early.
✅ How to Control Fear:
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Set a stop loss and stick to it
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Reduce position size so it doesn’t scare you
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Don’t check your screen every second
Fear will come. But discipline wins.
🤑 Greed — The Trap
Let’s say you’re up ₹2,000 profit.
Your target is hit…
But you say:
“Let me wait for ₹3,000 more…”
Market reverses.
Your profit becomes ₹0… or worse, a loss.
Greed makes you stay too long.
✅ How to Control Greed:
- Respect your targets
- Lock partial profits if unsure
- Think in months, not minutes
Greed turns winners into losers.
🕰️ Patience — The Real Superpower
Most new traders:
- Want quick money
- Jump into random trades
- Get bored waiting
But the best trades often come once or twice a week.
“No trade is better than a bad trade.”
✅ Build Patience by:
- Following a fixed setup
- Waiting for the right entry
- Understanding that no trade is a valid decision
💭 Real Trader Stories
🔴 Some traders lost lakhs in 1 day due to panic.
🔵 Some made crores by doing nothing on bad days.
🟢 The common trait among winners?
They’re calm. Focused. Disciplined.
🧠 Recap:
✅ Fear makes you exit too early
✅ Greed makes you stay too long
✅ Patience helps you wait for perfect entries
✅ Best traders master their emotions, not just charts
✅ Psychology is 70% of trading — strategy is the rest