The following aspects summarize the losses faced by retail investors:
1: Incorrect mindset; a slight fluctuation in the market can cause anxiety and restlessness. Even during profitable trades, there is extreme tension and fear that sudden price spikes will wipe out profits. They spend all day seeking out insider information and consistently chase highs and sell lows.
2: Lack of a complete personal profit model; relying purely on gut feelings to trade long or short, and thinking they are trading experts based on information gathered in public spaces, unaware that they are on the path to being cut.
3: Frequent trading leads to a breakdown of psychological defenses; each profit point may not even cover the platform fees.
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