Trading psychology · Intermediate

Decision Fatigue And Mental Energy

A 1-minute lesson from the MarketPro academy, one of 20 in trading psychology.

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Short answer

Every decision made during a trading session — which chart to check, whether to adjust a stop, whether a setup is good enough — draws on a limited pool of mental energy. Decision fatigue is what happens when that pool runs low, and judgment quality drops as a result.

Every decision made during a trading session — which chart to check, whether to adjust a stop, whether a setup is good enough — draws on a limited pool of mental energy. Decision fatigue is what happens when that pool runs low, and judgment quality drops as a result.

Signs Of Decision Fatigue

  • Later trades in a long session being noticeably less carefully reasoned than earlier ones
  • Increased willingness to break rules that were followed easily earlier in the day
  • A tendency to take the first available setup rather than continuing to wait for a better one
  • Feeling mentally drained despite having placed relatively few trades

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Lesson 20 of 20 in Trading psychology

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