1. 🕰️ Hindsight bias effect:
It is always easier to see the "right" decision in the past because the outcome is already known. After the price has pulled back, it seems obvious that it was worth taking profits at the local peak.
2. 📈 Desire to maximize profits:
Traders often try to sell at the very top of the rally. When the price rolls back, regret sets in: "I could have made more."
3. 💔 Fixation on missed opportunities:
Psychologically missed opportunities are felt more acutely than achieved successes. This makes the trader focus on the moment when the price was higher.
4. 😣 Emotional attachment to the outcome:
Losses or missed profits evoke strong emotions. This causes the trader to fixate on the 'perfect scenario,' ignoring the risk and unpredictability of the market.
5. 🤔 Difficulty in making decisions in real-time:
In a rising moment, it is difficult to assess whether the asset has peaked. When the pullback has already occurred, the trader begins to analyze the situation from the position of 'I should have known,' although in reality, this is impossible.
🛠️ Tip: Use a well-thought-out strategy to avoid making decisions under the influence of emotions. Follow risk management rules and perceive the market as unpredictable, rather than 'controllable.'