Psychological traps in CFD trading

Psychological traps consist of cognitive bias and emotional responses that negatively affect trading decisions. Cognitive bias compels traders from their strategy, potentially undermining their results. Notably, such traps are not exclusive to novices. Experienced traders are not immune to them either, especially when the market is volatile.

Emotions are powerful forces in trading. They can override rational analysis, prompting impulsive behaviour and unwise actions. Empirical findings in trading psychology indicate that investors frequently succumb to fear and greed, two emotions that can cloud their decision-making, potentially resulting in suboptimal profits or, more severely, significant losses.​

Understanding 6 common psychological traps in CFD trading

1. Fear of missing out (FOMO) drives traders to enter positions based on the anxiety of missing potential profits, often influenced by market hype or social media trends. This behaviour can lead to buying at peak prices without proper analysis. FOMO-driven traders may trade excessively, believing that more trades will increase their chances of hitting a winning opportunity.
2. Revenge trading. After incurring losses, some traders attempt to recover quickly by making impulsive trades without adequate analysis. This often exacerbates losses and deviates from disciplined trading plans. ​
3. Overtrading. A situation when traders try to always be active in the market and take positions without clear signals or strategies. This impatience can result in increased transaction costs and exposure to unnecessary risks. ​
4. Gambler’s fallacy involves believing that a series of losses or gains will be naturally followed by the opposite outcome. Driven by the anticipation of an imminent reversal, traders may prematurely try to ‘pick a top’ during a bullish trend or ‘find a bottom’ in a bearish trend, often without sufficient evidence.
5. Hope vs. strategy means holding onto losing positions, believing that the market will turn in their favour, despite evidence to the contrary. This can lead to significant losses as traders ignore stop-loss rules and objective analysis. ​
6. Herd mentality implies mimicking the crowd by following others’ trades without analysis. Herd behaviour may form bubbles or exacerbate market downturns, leading traders to buy or sell too early.

Spotting the signs—when you’re not thinking straight

Be mindful of the sudden impulses to deviate from your trading plan, especially after winning or losing a lot. A shifted risk tolerance, such as opening positions that are unusually large, can be a sign of emotional trading. Other behavioural red flags include:

• ignoring predetermined stop-loss levels​
• doubling down on losing positions
• frequently changing strategies without thorough evaluation.​

Recognising these signs is the first step in regaining control and preventing emotion-driven decisions.​ Here are other tips to stay in control when trading:

• Plan before trading. Develop a comprehensive trading plan that outlines entry and exit points, risk tolerance, position sizes​, and adhere to it
• Journal your trades to record your progress and monitor your emotional state. This helps identify patterns in behaviour and improve self-control.
• Use stop-loss and take-profit orders to automate discipline, ensuring that decisions are executed as planned, even in volatile markets. Given the high-risk nature of CFDs, such controls are vital
• Learn from mistakes. Regularly review your trading history to understand what worked and what didn’t. Reflecting on past errors fosters growth and helps in refining strategies
• Step away when needed. Taking breaks from trading, especially after a series of losses or even wins, can provide perspective and prevent burnout. As Kar Yong Ang, a financial analyst at Octa Broker, advises: ‘Your worst trades often come when you feel most confident—or most afraid. Mastering trading psychology is what separates short-term reaction from long-term resilience.’

While technical ability and market knowledge form the foundation of trading, psychological discipline determines long-term success. Even a valid strategy can be undermined by emotional biases. By recognising common psychological traps and implementing measures to negate them, traders can improve their decisions and perform more consistently. Constant self-monitoring, deliberate discipline, and emotional mastery are key factors in navigating the complex psychological landscape of trading.

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Disclaimer: This content is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to engage in any investment activity. It does not take into account your investment objectives, financial situation, or individual needs. Any action you take based on this content is at your sole discretion and risk. Octa and its affiliates accept no liability for any losses or consequences resulting from reliance on this material.
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Hashtag: #Octa

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Octa

Octa is an international CFD broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

In Southeast Asia, Octa received the ‘Best Trading Platform Malaysia 2024’ and the ‘Most Reliable Broker Asia 2023’ awards from Brands and Business Magazine and International Global Forex Awards, respectively.

Leading premium bathroom brand ARROW is expanding its presence in Vietnam, bringing a world-class living experience to local consumers through a strategic partnership with DASH Co., Ltd.

HO CHI MINH, VIETNAM – Media OutReach Newswire – 18 April 2025 – Global smart bathroom solutions provider ARROW has officially entered the Vietnamese market, attracting widespread attention and positive reception from consumers and industry partners alike.

With over 30 years of innovation and growth, ARROW Home Group has become one of the world’s most recognized names in smart sanitary ware and bathroom interiors. The brand’s strategic partnership with DASH Co., Ltd. to launch its first official flagship showroom in Vietnam marks a significant milestone in ARROW’s global expansion strategy and injects new energy into the country’s sanitary ware sector.

This launch reflects DASH’s bold commitment to bringing advanced technologies into everyday living spaces, meeting the rising expectations of Vietnamese consumers for modern, intelligent home solutions.

Vietnam’s rising demand for smart living

In recent years, Vietnam has emerged as a promising market for high-end sanitary ware, driven by rapid urbanization and economic growth, which are fueling demand for modern, tech-enabled living. Consumers are increasingly seeking innovative, smart, and user-friendly home products to enhance their lifestyles.

Recognizing this shift, ARROW has identified Vietnam as a key market in its global expansion. The brand’s entry into the country is both timely and strategic, positioning it to cater to a population that values quality, innovation, and functionality.

ARROW is more than a long-established name in the sanitary ware industry — it’s a global powerhouse. With a vast network of over 10,000 retail stores, 10 manufacturing facilities and 08 R&D centers, 1 national industrial design center and a presence in more than 60 countries, ARROW has earned a worldwide reputation for innovation and quality. In Southeast Asia, the brand has contributed to numerous large-scale projects in Bangladesh, Indonesia, Myanmar, and beyond, further cementing its regional influence.

Beyond its global scale, ARROW is widely recognized for its human-centered design philosophy and commitment to creative innovation. The brand’s products have earned more than 70 prestigious international awards — including the Red Dot, iF, and IDEA — further reinforcing its leadership in both design and quality.

The ARROW Vietnam Flagship Showroom, located at 218A Thành Thái, District 10, Ho Chi Minh City, marks the brand’s first official presence in Vietnam. Established and operated by DASH Co., Ltd., this showroom goes beyond a traditional display space, offering a cutting-edge retail experience. It showcases a diverse range of products, including smart toilets, shower systems, vanity cabinets, and kitchen appliances. Notably, ARROW is a trailblazer in the development of smart sanitary solutions for the elderly, a market segment that remains relatively untapped in Vietnam.

ARROW’s core technologies include ergonomically designed toilets that alleviate spinal pressure, along with smart toilets featuring automatic opening/closing, auto-flushing, heated seats, and massage washing functions. The brand’s advanced shower systems are built with a durable 4-layer nickel-chrome plating and ceramic cartridges that offer up to 20 years of reliability. Additionally, all premium ceramic products are fired at 1,280°C, ensuring exceptional strength and water resistance.

ARROW’s exclusive product lines, including the Heyue Series for the elderly and the Luxury bathroom cabinet collection, offer a diverse range of elegant and highly customizable designs. These collections highlight ARROW’s commitment to innovation, specifically tailored to meet the unique habits and preferences of local consumers.

DASH – Bridging ARROW and Vietnamese consumers

DASH Co., Ltd. plays a crucial role in ARROW Vietnam, driving the research and development of products tailored to the local market’s needs. As ARROW’s strategic partner, DASH is committed to pioneering the distribution of smart sanitary solutions. This partnership not only enables ARROW to quickly and efficiently enter the Vietnamese market but also ensures that consumers have access to premium products at competitive prices.

In the long term, DASH is focused not only on expanding its product offerings but also on building a nationwide showroom network, with a strong emphasis on enhancing customer experience and providing exceptional after-sales services.

“The opening of the ARROW showroom in Vietnam marks a significant milestone in DASH’s journey to becoming a leading brand in the import and distribution of smart bathroom solutions,” said Ms. Lê Hoàng Diệu Tâm, Chairwoman of DASH Co., Ltd.

Embodying the spirit of “Intelligence of Living,” which seeks to offer modern, convenient, and trend-forward interior solutions, the ARROW showroom on Thành Thái Street is designed to provide customers with a shopping experience that blends high-tech innovation with natural elements. Spanning three stories and 1,000 m², the showroom is divided into:

• The first floor: Family living space
• The second floor: Premium designs for apartments, restaurants, and luxury hotels
• The third floor: Standard sanitary equipment for townhouses and mid-range apartments

The showroom features model layouts and real-life experience zones, thoughtfully designed to help customers visualize and choose the perfect products for their homes. It also caters to young buyers by offering a wide range of products at various price points and quality levels, supporting them in the journey of building their first home.

Looking ahead, DASH is focused on channeling all resources into building a strong foundation for future expansion into other promising markets across the region, extending beyond Ho Chi Minh City. As it progresses on this growth journey, the brand is steadily cementing its ambition to become a leader in smart sanitary ware, bringing advanced technologies closer to every Vietnamese household.

ARROW Vietnam Flagship Showroom
Address: 218A Thành Thái, Ward 14, District 10, Ho Chi Minh City
Website: shop.arrowhome.vn
Hotline: 19001038
Hashtag: #ARROW

The issuer is solely responsible for the content of this announcement.

The event features the world premiere of the Singapore-exclusive MR.PA Merlion vinyl plush, which has attracted long lines of toy collectors and MR.PA fans. In addition, MR.PA mascot appearances take place every Friday to Sunday from 2 PM to 8 PM, along with special meet-and-greet sessions where the designer himself appears for live autograph signings. The pop-up is filled with photo-worthy scenes, free scented cards giveaways, interactive games, and lucky draw prizes, all of which have made it a must-visit event.

During the opening ceremony, Jerry Lu, Head of Global Business at M&G LIFE, shared:

“This is our first in-depth collaboration with Jewel. At such a globally recognized venue, we aim to offer a fresh perspective on lifestyle aesthetics to consumers from all over the world.”

Ziqi Tong, Marketing Director at M&G LIFE, added:

“MR.PA represents a lighthearted and joyful lifestyle attitude, which aligns beautifully with the spirit of M&G LIFE.”

The event has already welcomed thousands of enthusiastic visitors. One local fan, Ms. Lee, remarked:

“The Merlion collaboration design is incredibly cute！I queued for the limited-edition plush and even received the designer’s autograph. Meeting the mind behind such a fun character was truly exciting!”

After the event, the limited-edition MR.PA Merlion Vinyl Plush will be exclusively available at M&G LIFE stores in Raffles City and Wisma Atria, giving fans another chance to take home a piece of this delightful cultural crossover.

Hashtag: #M&GLIFE

The issuer is solely responsible for the content of this announcement.