Have you ever had this experience? You have already set a stop loss and told yourself not to watch the market, but you still can't help checking the market over and over again, and even can't sleep at night. Behind this compulsive market watching behavior, there are actually many psychological mechanisms hidden.
First of all, maybe you have invested a lot of money, and these funds have a direct impact on your life. In other words, once you lose this money, it may mean that your life will change dramatically, and because of this, you lack a sense of security. Especially when making high-risk investments, such as using high leverage, you will always be in a state of tension, because the liquidation price is very close, and if the market fluctuates slightly, you will worry that everything will go back to zero.
The ups and downs of the market are like a psychological battle. When the market enters the adjustment phase, your emotions will be amplified, and anxiety, uneasiness and even fear will sweep over you. Sometimes, this emotion will drive you to stay up late to watch the market, or even impulsively double your bets after a loss, in an attempt to make up for the loss in one go. However, at this time, you may be very tired, your brain is in urgent need of rest, and your thinking begins to become irrational. You may say to yourself: "Let's go all in. It doesn't matter if I lose and get liquidated, as long as I can get a good night's sleep."
This is the psychological root of many people's uncontrollable staring at the market, which stems from the fear of loss and the fatigue and anxiety that put themselves in a crazy cycle. Investment is not only a game of funds, but also a psychological battle.
To break out of this cycle, you need to do the following:
Control your position: Never invest an amount that exceeds your psychological tolerance.
Rational decision-making: Set clear strategies for yourself and don’t change your plans easily.
Learn to rest: When you feel emotionally unstable, leave the market at the right time and stay calm and rational.
Investing is a long-term race, not a short-term game. I hope that on your investment journey, you can not only gain wealth, but also a peaceful mind.
