I’ll be real with you: for a long time, my biggest trading problem wasn’t a lack of knowledge or a bad strategy. It was impulsiveness.
I’d open trades without thinking them through. I’d see a green candle and jump in. I’d watch a stock dip and panic-sell. I wasn’t trading with a plan—I was reacting with emotion.
And those impulsive trades? They cost me. Not just money, but confidence, consistency, and peace of mind.
If you’re stuck in the same loop, you’re not alone. But there is a way out. In this post, I’m going to break down how I stopped making impulsive trades, and more importantly, how to avoid impulsive trading decisions before they wreck your progress.
What Impulsive Trading Really Looks Like
Before we get into the fix, let’s identify the problem.
You might be making impulsive trades if you:
Jump into trades without a clear plan
Buy or sell based on sudden emotion (FOMO, fear, frustration)
Constantly change your strategy mid-trade
Trade more when you’re bored, angry, or overconfident
Chase losses with revenge trades
Sound familiar? It did for me.
For example, I once got into a stock just because it was trending on Twitter and had a huge green candle. I didn’t check the chart. I didn’t check the volume. I didn’t even know what the company did. I just clicked “buy.”
Two hours later, I was down 15% and wondering why I felt like an idiot.
That’s impulsive trading. And it’s a fast track to blowing up your account.
Why Impulsive Trading Happens
Most impulsive decisions don’t come from bad intentions—they come from emotions.
Let’s break that down:
1. FOMO (Fear of Missing Out)
You see a stock ripping and think, “I’m gonna miss this!” So you jump in late—and often top-tick it.
2. Fear of Loss
You’re in a good trade, but the price dips a little and you panic-sell—even though your stop loss hasn’t been hit.
3. Overconfidence
You just nailed two great trades, and now you think you can’t lose. So you go in bigger… and pay the price.
4. Revenge Trading
You just took a loss, and you want to “make it back” immediately—so you rush into the next trade without a plan.
Every one of these emotional responses has bitten me. And the only way I started to change was by slowing down and building a system that helped me stay rational.
Step 1: I Started Using a Pre-Trade Checklist
This sounds simple, but it was huge.
Before entering any trade, I go through a quick checklist:
Is this part of my strategy?
What’s my entry, stop, and target?
What’s the risk-to-reward ratio?
How much am I risking in dollars or % of my account?
Am I trading because the setup is strong—or because I feel bored, anxious, or greedy?
If I can’t answer those clearly, I don’t take the trade. Period.
This one habit helped me pump the brakes and stop reacting emotionally. It made me feel like I was running a business, not just clicking buttons on a screen.
Step 2: I Added a Cooling-Off Rule
Here’s a rule I started following after a string of impulsive revenge trades:
After every losing trade, I take a 15-minute break. No exceptions.
I close my charts, walk away, grab coffee, take a breath. I don’t immediately jump into something new trying to “win it back.”
It sounds silly, but this short pause lets my brain reset. It helps me separate the last trade from the next one so I’m not making decisions out of frustration or ego.
Step 3: I Started Journaling Every Trade
Yep, I became that person.
I started logging every trade—entry, exit, reason for entry, outcome, and most importantly, how I felt before and after the trade.
What I discovered was eye-opening.
Most of my impulsive trades were made when I was tired, bored, or annoyed.
My best trades happened when I was calm, focused, and sticking to the plan.
When I journaled consistently, I became way more self-aware—and self-control got easier.
This habit didn’t just help me improve my strategy—it helped me improve me.
Step 4: I Reduced the Number of Trades I Took
At one point, I was taking 10-15 trades per day. I thought more trades = more opportunities = more money.
Wrong.
I was overtrading. Most of those trades weren’t high-quality—they were emotional, rushed, and sloppy. And my win rate showed it.
So I set a rule: Maximum 3 trades per day.
That forced me to be more selective. If I only had a few bullets, I didn’t want to waste them on mediocre setups. I waited longer. I thought more carefully. And guess what? My results improved almost immediately.
Fewer trades. Better trades.
Step 5: I Started Treating Trading Like a Job (Not a Casino)
The truth is, for a while, I was treating trading like gambling. I’d show up, click around, hope for the best, and blame the market when things went south.
But when I started treating it like a profession—with routines, rules, planning, review—everything changed.
I created a daily routine:
- Morning prep
- Trade plan review
- Clear watchlist
- Trade journaling
- End-of-day review
- That structure gave me the discipline to stop making snap decisions. It made trading feel intentional instead of impulsive. And that gave me confidence.
Step 6: I Learned to Be Okay With Not Trading
This was probably the hardest lesson of all.
I used to think I had to trade every day. That if I wasn’t taking action, I was falling behind. But that mindset leads to forced trades, low-quality setups, and unnecessary losses.
Now, if nothing fits my criteria, I do… nothing. I step away. I let the market come to me.
Some of my best weeks were ones where I only took two or three trades total. And it felt good—because every one of those trades was on purpose, not on impulse.
Final Thoughts: It’s Not About Being Perfect—It’s About Being Conscious
Here’s the truth: you’re never going to eliminate every impulse. We’re human. Trading is emotional. But you can build systems, habits, and self-awareness to avoid letting those impulses drive your decisions.
If you’re wondering how to avoid impulsive trading decisions, here’s a quick recap of what worked for me:
- Use a pre-trade checklist
- Take a break after losses
- Journal your trades and emotions
- Limit your daily trade count
- Stick to a daily routine
- Embrace the power of sitting out
- You don’t need to be a robot to succeed at trading—but you do need to be in control.
- If you can slow down, be intentional, and act from a place of clarity instead of emotion, you’ll be shocked how much better your results—and your stress levels—get.
Next Article To Read: How I Stopped Chasing Losses Through Revenge Trading