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Dunn To PerfectionFoundation

Trading Psychology · Module 1: Emotions · Lesson 1

Fear

Beginner 6 minLesson 1 of 13

Learning objectives

  • Explain fear in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

Fear shows up as hesitation, closing winners too early, or avoiding valid plans.

Why it matters

Fear distorts judgement and can make you exit plans prematurely.

How markets interpret it

Panic selling during sharp drops is fear at scale.

Key takeaways

  • Fear is normal; rules help manage it.

Knowledge check

A common sign of fear is…

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