1. The reason is usually that traders are afraid of failure and dare not accept losses. Such traders have strong self-esteem.
2. Close the position in advance. Once the position is closed, there will be no more anxiety. The reason for anxiety is the fear of position reversal, and traders need to be comforted quickly.
3. Traders do not want to control the transaction, nor do they want to be responsible for the transaction. Traders are unable to accept reality.
4. Getting angry after a loss, feeling framed by the market, wishful thinking about a particular transaction, being complacent when successful, or asking the market to prove that you are right will all lead to losses.
5. Trade with money you can’t afford to lose or borrowed money. Treat a trade as a last resort. Traders who want to succeed or are afraid of missing out will fall into this trap. Traders who are undisciplined and greedy will fall into this trap.
6. Traders do not admit that the transaction is a loss and hope to get back the money. Such traders have a strong self-esteem.
7. Traders are easily excited, easily addicted, and like to gamble. This type of trader always trades based on intuition. When there is no trading, such as weekends, they will be restless. They are obsessed with trading.
8. Be complacent after making money and think you can control the market.
9. Account funds cannot increase in value - profits are very small. In this case, traders have no motivation to make money. This is usually caused by psychological reasons such as lack of confidence.
10. Traders do not believe that their trading systems are really useful, or they have not tested them seriously. Maybe the system does not suit your personality, maybe you need excitement when trading, or maybe you think you cannot find a successful system.
11. Over-predicting trading results, fear of losses, fear of making mistakes, and the result is that you are at a loss.
Perfectionists are prone to problems. Perfectionists want to be certain about the results. They don’t know that losses are also part of trading. They don’t know that the results are unknown. They do not accept the risks of trading and they do not accept unknown results.
12. The trading volume is incorrect, and the trader dreams that the trade will make money, thus ignoring the risk and the importance of money management. Maybe the trader does not want to take responsibility for the risk, or is too lazy to calculate the appropriate trading volume!
13. Overtrading, wanting to conquer the market, the reason may be greed, wanting to take revenge on the market after losing money. This is very similar to impulsive trading, please see point 7!
14. Afraid of trading and without a system, traders feel uneasy about risks and unknown results. Traders are afraid of losing all their money and being laughed at. Perhaps traders need self-control and have no confidence in the trading system or themselves.
15. Being impatient on non-trading days. Because of anger, fear, greed and other psychological influences, traders' emotions fluctuate. Traders are overly concerned about the results of transactions and do not study the process and related techniques of transactions. Traders are too concerned about money. Expectations are too high and unrealistic.
16. You want to trade all kinds of products and follow all kinds of signals, for fear of missing out on any signal.
In the selection of varieties, there are two principles for trading:
The first principle is "don't trade unfamiliar products and markets". That is, the technical trends of the market you participate in must be able to be included in his technical analysis framework.
The second principle is "don't trade in an inactive market" because the less liquid a market is, the easier it is for its price movement to be manipulated. If you rashly participate in such a market, you will be trapped. The best trading products are those with good liquidity, active trading prices, and real and natural trends.
17. Being too obsessed with pursuing the right time to enter a position, and hoping that once entering a position, the price will immediately break away from the cost and that there will be floating profits immediately. However, if once entering a position, one is temporarily trapped, it will be very uncomfortable and unbearable, and one will want to cut all short positions and get out. Being too obsessed with perfect transactions.
Theoretically speaking, if trading technology accurately solves the problem of choosing the timing of entry and exit, self-management and self-management are completely unnecessary.