"The Roots and Lessons of Trading Losses"
In the trading process, investors often suffer significant losses at certain critical moments. This situation usually occurs after placing a long or short order when investors begin to expect the market to develop according to their expectations. If the trade starts off favorably, they hope the profits will continue to increase; but when the market reverses and declines, they wish for the market to rebound back to a favorable position. Conversely, if the trade is unfavorable from the beginning, they hope the market will quickly reverse, and when there is a slight rebound, they wish for the profits to increase further. However, when the market turns against them again, they again expect the market to turn in their favor, and ultimately, when the position reaches the liquidation price, they still hold onto hope, believing the market has hit a low or high and should now start to work in their favor, and may even increase their margin, repeating this erroneous behavior.
The lesson here is to stop having unrealistic expectations about trading outcomes and instead look forward to gaining valuable lessons from each trade. This is not only a requirement for oneself but also a sincere hope for all traders.
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