What psychological states may occur when trading on the short-term chart, and about taking profits and stop losses, and preventing “round-trip” whipping—are you being swayed by your emotions rather than by price movements?

Tengen Mental Management.03

First, why are we being swung around?
Well, mainly it’s due to a sense of overpricing.
◯ Breakouts above resistance lead to higher highs; breakouts below support lead to lower lows, plus entries that expect a trend with new highs and lows
◯ Fishtail entries based on indications of reversal at recent highs or lows with long wicks
◯ Viewing the chart in a range, confirming reversal from highs and lows before entering.
However, without a reversal, being lured into new highs again and getting stopped out—range counter-trend entry
◯ From the above flow, chasing a range breakout and getting whipped around by price actions such as double tops or head-and-shoulders—a back-and-forth slam entry

And so on…
When price moves, discretionary judgment becomes the cause.
Here, differences in people’s thinking and emotional handling appear.

① People who get scared → reduce position size and widen tolerance

② People who lose their cool → switch to a longer time frame to calmly reassess the environment

③ People who get irritated → prepare a separate cooling-off account and do rehabilitation trades. People who get irritated tend to try to increase lot size or compensate for losses with bigger bets.
Emotional people cannot easily close the chart, so rather than simply making rules for what you cannot do, you should change the battlefield or find a satisfactory stopping point.

④ People who justify trial and error and continue trading with a skewed market view → look at the chart as if you currently hold a long or a short position, regardless of actual exposure.
Reassess once you can see buyers’ or sellers’ take-profit and stop-loss points.

《Important Point》
Stop-losses and back-and-forth slaps are things that can happen when trading; they’re part of having able to cut losses.
The problem is not that stop-losses exist, but that you repeatedly fail to overcome the reasons why you ended up stopping out.
And when price moves swing you, many people’s minds get damaged and they become lost in the market.
And yet, the solutions, the way of settling, and how to manage stop-losses well differ from person to person; there is no universal shortcut.
To know the enemy and know yourself, and you will never be in peril in a hundred battles.
Desire, the enemy, as well as the mind, cannot be conquered unless you know yourself.

As mental management, if emotions tend to swing at stop-loss moments, always plan the entrance and exit beforehand to make management easier.
That’s the simple but important practice: enter with justification and exit if the justification collapses.
If you already understood it, your mind won’t waver.
When something unexpected or beyond predictions happens—truly unforeseen events—the human mind is fragile.

We will continue to output mental management insights.