Glossary › temptation

Trading glossary · psychology

temptation

A strong urge to break your trading rules, like chasing a fast move or trading bigger after a win.

The fuller meaning

A moment that pulls a trader to break the plan: chasing, revenge trading, oversizing or trading into news. The discipline challenge is built from such moments, scored on following the plan or adjusting only by a written rule; if-then rules decide the response in advance.

temptation.

Related words

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