Trading Psychology Under Geopolitical Conflicts | Why Do You Always Chase Highs and Sell Lows?

Since April, the market has been driven by news: first, a collective rebound on expectations of a ceasefire, then a sharp plunge as the situation reversed. Many accounts have experienced a roller coaster in these two days—buying in during the rise, selling out during the fall.

Why does this happen?

Because the brain's "loss aversion" is at work. When prices rise rapidly, you fear missing out (FOMO), so you chase the highs; when prices fall quickly, you fear losing more (FUD), so you sell off. These two emotions alternate within the same week, enough to destroy any trader lacking discipline.

Four Iron Rules of Trading Psychology in April

Iron Rule 1: Prepare your plan in advance, avoid decision-making during trading hours

Before the market opens each day, write down your buy range, sell range, and stop-loss levels. Stick to it strictly during trading hours, and do not make last-minute changes.

Iron Rule 2: Use a "time filter" to combat FOMO

When you want to chase the high, force yourself to wait 15 minutes. After 15 minutes, the impulse often subsides, allowing you to judge more calmly whether to enter the market.

Iron Rule 3: Accept "not selling at the highest point"

In markets dominated by geopolitical conflicts, reversals often happen within a single tweet or a single sentence. Don't try to perfectly catch the top; partial profit-taking and moving stop-losses are the best tools to cope with uncertainty.

In April, controlling your emotions is more important than predicting the direction.

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