There are 3 common mistakes in trading, described as follows:

1 Habitually burying one's head in the sand

Once a trade does not go in the expected direction, some people behave like ostriches and bury their heads in the sand, ignoring the situation. Many people lose a lot of money because of this; they watch their losses expand without taking any measures, allowing the situation to develop unfavorably, even closing their accounts in the hope that the market will recover.

2 Inner conflict and resistance

When executing trades, traders often experience significant inner conflict and resistance. For example, if a stock triggers your stop-loss condition, the system states that you should exit the trade unconditionally, but thoughts like "What if the price rebounds after I stop-loss?" arise in your mind, leading to intense internal struggles, which can be very painful.

3 Living in one's own fantasies

When the stock price of a held position falls, traders look for positive news to comfort themselves instead of quickly taking countermeasures; when the stock price rises, they fantasize about it increasing even more, hoping to double their profits after gaining 50%, and then wishing to double it again, rather than conducting scientific analysis based on logic, trends, and fundamentals. This is a manifestation of fantasies occupying their minds.