Forex Psychology Cheat Sheet

Four Pillars

• Plan – Written rules you commit to.
• System – Clear entry, exit, and risk rules.
• Journal – Honest record of trades and lessons.
• Self-awareness – Know your personality, schedule, and triggers.

Trading Plan Checklist

Component	Include
Goals	What you want (returns, learning, preservation)
Rules	When to enter/exit, which pairs, timeframes
Risk	1–2% per trade, max drawdown, position sizing
Review	Weekly/monthly review schedule

Flow: Goals → Rules → Risk → Review

Trader Types Quick Reference

Style	Timeframe	Hold Period
Scalper	M1–M5	Minutes
Day trader	M15–H1	Hours (close same day)
Swing trader	H4–D1	Days to weeks
Position trader	D1+	Weeks to months

Match style to personality, schedule, and capital.

System Components

• Entry – What must be true before you open? (Specific, backtestable.)
• Exit – When do you close? (Take profit, stop, trailing.)
• Risk – How much per trade? Max daily loss?
• Timeframe – Which chart(s) do you trade?

Keep it simple. Fewer rules = less over-optimization.

Journal Template

Field	Record
Entry	Price, time
Exit	Price, time
Reason	Why you traded (setup)
Outcome	P&L, R-multiple
Lesson	What you learned

Review weekly. Spot patterns: overtrading, revenge trading, rule breaks.

Emotional Traps to Avoid

• FOMO – Chasing moves you missed. Stick to your plan.
• Revenge trading – Trying to win back losses quickly. Stop after max loss.
• Overtrading – Taking trades outside your plan. Wait for setups.
• Moving stops – Hoping a loser will turn. Honor your stop.

Key Rules

• Write your plan down. Verbal plans get bent when emotions run high.
• Follow your rules. If you keep breaking them, adjust the plan deliberately—not mid-trade.
• Journal every trade. The journal is your feedback loop.
• Review regularly. Weekly or monthly. Use data, not feelings.