The fundamental reasons why most people lose money can be summarized into the following ten typical mindsets:
1. Floating loss of $300, when reaching the stop-loss level, unwilling to stop loss, but instead analyze the market first.
2. Floating loss of $500, after research, discovering a strong support level, believing the price will not break below it.
3. Floating loss of $1000, becoming even more reluctant to stop loss, deciding to treat it as a long-term holding position, and adding margin, no longer setting a stop loss.
4. Floating loss of $2000, adding to the position too early. After checking market comments, institutional forecasts, and expert opinions, finding that most people are bullish, thus continuing to hold the position, expecting a rebound.
5. Floating loss of $1500, feeling that the market is about to reverse, adding to the position again to lower the cost, expecting to make a big profit.
6. Floating loss of $3000, realizing that the market is not reversing but merely rebounding. Deciding not to fear the loss, because this month has already made $3000, at worst it can be considered as a wasted effort, adding another position, and if the price returns to the initial entry point, can still make $3000.
7. Floating loss of $5000, starting to doubt the market, believing it might be manipulated by the big players to shake out retail investors. Determined to continue adding margin and increasing the position, believing that any slight rebound will allow for recovery.
8. Floating loss of $4000, feeling that the market is finally about to reverse, deciding not to add to the position anymore, but to definitely hold on.
9. Floating loss of $6000, seeing the market drop again, firmly believing that the price will not continue to fall, convinced it is at the bottom, again adding margin.
10. Floating loss of $7000, hoping for a favorable prediction from the upcoming non-farm payroll data, firmly believing that it can turn around.
Final result: Floating loss goes to zero, account balance also goes to zero.