To be honest, I have been doing trading for so long and have met all kinds of people. They always have various operations when doing trading. But when they lose money, although the amount of loss is different, they have several common points, most of which cannot escape the following aspects:

Herd mentality

Imagine a scenario like this: after careful consideration and analysis, you finally buy stock X, but then you find that your friends who trade stocks have all bought stock Y. At this time, will you doubt whether you have made a mistake? Will you choose to give up stock X and buy stock Y? I think most people will choose to give up the stock they chose and choose to be consistent with others.

From a psychological perspective, this mentality is called herd mentality, because individuals may change their original ideas due to external or group pressure. It can be said that this change is external and does not come from your heart. It is just a passive change you make under pressure.

This herd mentality is also very common in the trading market, but herd mentality is not terrible. After all, from a certain perspective, herd mentality can save you some time and energy. If you do not analyze the existing market conditions, and there is some information in the market or the market begins to show some signs, then you can follow the pace of some experienced traders or even professional institutions. This is also a way of operation.

What is really scary is blindly following the crowd, that is, believing whatever people around you say, and never asking yourself what you really want. Even if you have analyzed a lot and spent 2 hours deciding to buy a stock, but because of what others said, you choose to buy another stock heavily. This time the decision-making time is very short, only 2 seconds. This kind of behavior is irresponsible for your own trading.

Disgust

I once had such an experience. In a volatile market, because the stop loss point was set too high, the stop loss was triggered and I left the market after the market moved a few times. As a result, the market entered a one-sided market. If I had not triggered the stop loss at that time, I would not have missed this wave of market. So after that, I started to not set a stop loss, but in return I suffered even heavier losses.

Why do I feel disgusted? Actually, it is very simple, because we are trading in real money, and if the stop loss is triggered, it means that we will lose a certain amount of principal, which is probably not something that everyone can bear.

Therefore, there will be a situation of holding on to orders, hoping that the market will reverse and allow oneself to revive, but hating stop loss, which is also irresponsible for one's own transactions, especially in short-term transactions. Stop loss is the last line of defense, because the market fluctuates too much, if you are not careful, it is easy to lose everything.

Therefore, we should learn how to stop loss better, rather than hate stop loss and give up stop loss. The aversion mentality will only destroy our normal trading operations in the end, which will not be worth the loss.

Default position

A few days ago, I was chatting with a friend who is also an investor. He said that he likes to predict whether the market will rise or fall today before the market opens, and then start making orders. However, subsequent operations are always affected, so that he gets nothing after all the operations and feels very regretful.

In fact, this mentality is also very common. For example, before the market opens, we predict that the market will rise today, so we choose to be bullish. So when you see the market falling, there will always be such a thought in your mind: "Don't panic, this is just a technical adjustment, it will soon rise back." So you continue to be bullish, and the market plummets, and you lose everything; if you predict that the market will fall today, then a similar situation will occur. When the market goes up, you will think, "It doesn't matter. This is already the peak, it will fall next, and it will definitely fall today." You continue to be bearish, and the market rises sharply that day, and you lose money again.

The main reason for this situation is that you don't have a correct understanding of the market. You should know that the market will not change because of your ideas, but you will change because of your own ideas. Because before the market opens, you have already set a position for yourself: the market will rise/fall. This position will also affect your operations, making you involuntarily go in the direction you envision. But the changes in the market are not decided by you, but by the market, which is why the preset position cannot help you make a profit.

Summarize

In fact, for traders, there are many ways to make money. Technical analysis, market sense, fundamental analysis, etc. can all help you make a profit, but losing money is basically due to the following reasons: being too greedy, not wanting to admit defeat, not having your own ideas, etc. Therefore, we must overcome this mentality so that we can make a profit in the market. #VanEck提交首个SolanaETF #币安合约锦标赛 #IntroToCopytrading