In the field of trading, mentality is crucial. As Buffett said: "When others are greedy, I am fearful, and when others are fearful, I am greedy." Greed and fear are like the two demons in trading, which affect us all the time.
1. Fear of loss
This is a common mistake made by novices. They get nervous when the market fluctuates slightly, and they are eager to sell when the price rises a little, for fear of losses. In essence, fear prevails, greed is insufficient, and there is too much thinking but insufficient knowledge reserves. With the gradual accumulation of technology and experience, this mentality can usually be overcome, but if it cannot be changed, it may not be suitable for trading.
2. Follow the crowd
Lack of self-confidence, easily influenced by group emotions, showing a typical "mob" mentality. Some people are unwilling to learn because of greed and laziness, blindly follow the views of others, and are unwilling to think independently. The opinions of others can be used as a reference, but the final decision must rely on oneself, and self-confidence is the key.
3. Stubbornness
Such traders are more stubborn, and they are still unwilling to admit defeat when the market trend is contrary to expectations. They always fantasize about turning the tables, and the result is often aggravated losses. Lack of strict fund management, coupled with stubbornness, will only end up with heavy losses. It is important to remember that stop loss is crucial, no matter how stubborn you are, you must learn to stop loss.
