Gann believes that there are three main reasons why most people lose money in the stock market: ① excessive trading or too frequent buying and selling;
②No stop loss order is used;
③Little knowledge of the market.
W.D. Gann (William Delbert Gann) is a famous stock trader and market analyst. The three reasons he proposed for most people losing money in the stock market are profoundly enlightening and apply not only to the stock market but also to In the currency circle.

1. Overtrading or buying and selling too frequently: Overtrading refers to investors buying and selling assets frequently, usually out of emotional impulse or in an attempt to capture short-term fluctuations. This behavior results in high transaction costs, including commissions and taxes, and also increases risk. Gann believes that the reason why most people lose money is because they do not have the patience to stick to their investment plans, but trade too aggressively.

2. Failure to use stop-loss orders: Stop-loss orders are an important risk management tool that can help investors limit losses in the event of adverse market movements. Failure to use stop-loss orders may result in investors being unable to stop losses in time when the market falls, and thus suffering greater losses. Gann emphasized the use of stop-loss orders because it helps protect invested capital.

3. Little knowledge of the market: Understanding the market and investment tools is the basis for successful investing. Gann pointed out that one of the reasons why many people lose money is that they lack sufficient market knowledge. Failure to understand market fundamentals, technical analysis, fundamental analysis, and investment tools can lead investors to make unwise decisions. Therefore, it is very important to continue to learn and accumulate market knowledge.

These three perspectives emphasize the importance of discipline, risk management and knowledge. Investors should develop a clear investment plan, adhere to discipline, avoid over-trading, use stop-loss orders rationally, and constantly improve their understanding of the market. Regardless of the currency circle or the stock market, successful investment relies on correct methods and firm determination.

#交易心理 #止损

Human suffering comes from three modes of thinking: thinking that you have failed, thinking that you are inferior to others, and thinking that you will never succeed. "
Thinking of yourself as a failure: Everyone faces failures and setbacks in cryptocurrency investing. Market volatility is inevitable, and investors can make mistakes. However, failure is not the end, but should be seen as an opportunity to learn. I believe that with every failure, we can gain experience, improve our investment strategies, and ultimately achieve greater success. Failure is the only way to success.
Thinking of yourself as inferior to others: In the cryptocurrency space, sometimes seeing other investors seemingly having great success can make people feel inferior or inadequate. However, we should remember that everyone’s situation is different and so is their path to success. Comparing yourself to others is not always beneficial because each of us has our own strengths and weaknesses. The key is to focus on your own investment goals and strategies, constantly improving yourself rather than focusing too much on the achievements of others.
Thinking you'll never succeed: This negative thought pattern can lead to self-doubt and disappointment. But I think it’s unrealistic to think that it will never work out. Success takes time, effort and patience. In cryptocurrency investing, market volatility is high, but it is this volatility that also creates opportunities. As long as we maintain firm confidence, continue to learn and adapt to market changes, success is possible. Never underestimate your potential.
Overall, both Cryptocurrency Investing and Life Philosophy Art emphasize positive thinking and mindset. To overcome these three thinking patterns, we need to develop self-confidence, learn to learn from failures, avoid excessive comparison with others, and believe that we can achieve success. These concepts apply not just to investing, but to all aspects of life, helping to build a positive, fulfilling life. #交易心法