The market has reached this point, and it's interesting how emotions dominate trading
Hope to enter the market?
Fear to exit?
What causes price fluctuations?
Emotions generally have three traps
Loss aversion: Fear of loss, holding on, not losing money is far more important than
making money, not understanding when to cut losses
Outcome bias: Judging good or bad solely based on the outcome
Often leads to anxiety about gains and losses
Anchoring effect: Over-reliance on easily available information
Such as round numbers, recent highs and lows
Find effective technical analysis to observe market sentiment
Trade according to changes in sentiment, and build a trading system