Glossary › if-then rule

Trading glossary · psychology

if-then rule

A plan written as 'if this happens, then I will do that', so you already know what to do when a tricky moment comes.

The fuller meaning

A pre-written response to a known temptation, set before the week starts: 'if I missed the move, then I wait for a pullback or skip'; 'if I lose twice, then I stop for the day'. Deciding in advance turns emotional moments into routine decisions.

if-then rule.

Related words

anchoring · boredom trading · chasing · cognitive bias · confirmation bias · consistency · cool-down rule · discipline · disposition effect · emotion