Good morning!

In fact, trading often goes against your usual thinking. Which do you think people are more inclined to do: adding to a position when they have unrealized gains or averaging down when they have losses? Most people tend to quickly withdraw their profits, fearing that the money they have will disappear; however, when they incur losses, they often hold on, hoping that one day they can break even.

This is all due to the anticipation and fear playing tricks in people's minds. When the market rises, they worry about losing their profits and rush to lock in their gains; when the market falls, they are reluctant to admit their losses, constantly hoping that with time they can recover their lost money.

Trading, to put it simply, is about competing with yourself. You need to learn to go against your own nature. Adding to a position with realized gains is essentially using the money you've made to cushion yourself, taking a further risk for potentially greater returns. But to win, you must continuously challenge yourself, not be afraid of cutting losses, and resist the urge to become complacent when profits arise, allowing successful trades to continue.

Only with profitable trades do you have the confidence to keep operating and to let your profits grow larger.

As the investment master Livermore said, money that's earned will protect itself, but lost money doesn't have that ability. So if the market conditions are favorable, don't let fear paralyze you; let your profits run.

The farther it runs, the better. Who knows, one day when you look back, that small profit may have turned into a significant fortune.