BRVX Glossary · Trading psychology · Updated September 25, 2026
Trading psychology is the set of emotions and mental habits — fear, greed, hope, overconfidence — that shape trading decisions, often against a trader's own plan. Research on retail traders consistently finds that behaviour, not market knowledge, explains most losses.
On this page
Five costly biases
- Loss aversion: holding losers too long and cutting winners too soon.
- Revenge trading: sizing up after a loss to win it back.
- Overconfidence: raising size after a winning streak.
- Recency bias: expecting the last few candles to continue.
- FOMO: entering late because others are profiting.
What the research shows
Studies of Brazilian day traders (2019) found that 97% of those who persisted for 300 days lost money. Odean's work on US brokerage accounts in the 1990s showed investors sold winners about 50% more readily than losers — the disposition effect.
Habits that help
Write rules before the session, fix risk per trade in advance, set take-profit and stop-loss at entry, keep a trading journal and stop after a set number of losses in a day. The aim is to take decisions while calm and carry them out while stressed.
On BRVX
BRVX lets you set take-profit and stop-loss when you open a position, so exits are decided before emotions arrive. Leverage from 5x makes every bias costlier: a revenge trade at high leverage can end an account in one move.
Questions about Trading psychology
Why is trading psychology important?
Because most trading losses come from breaking rules under stress, not from lack of knowledge.
What is revenge trading?
Trading bigger or more often right after a loss, to win the money back quickly.
How can I improve my trading psychology?
Pre-set rules and exits, fixed risk per trade, a journal, and a daily loss limit.
Trading psychology: next steps on BRVX
Trading psychology with leverage: MSFT/USDT allows 5x to 100x; at its 50x default, 1% equals 50% of margin. Set TP / SL before opening.
Read next: FOMO (fear of missing out), Stop-loss and Drawdown.
Leverage works both ways: a small move against you can lose you the whole margin.
Open MSFT/USDT in the app
Open appLeverage raises both gains and losses. Start with a size you are comfortable with. Not available to US persons.