Some people hold onto losing trades, losing thousands of dollars, even ten thousand dollars, and when they are close to breaking even, they quickly sell off. At that moment, they feel so happy they want to fly, believing their previous choice was right, and thankfully they held on.
Some people have unrealized gains of several thousand dollars, even ten thousand dollars, and when they experience a pullback, they quickly sell off as they are not far from their principal, giving themselves a few slaps for being greedy, wondering why they didn't sell earlier.
These two types of people are different: one is losing yet believes their previous choice was incredibly correct; the other is gaining yet is full of regret. Trading is like this, so contrary to human nature.
The correct choice should be that when you successfully hold a position, you join your hands in gratitude, thankful that the market has given you a lifeline. At the same time, summarize the lessons learned, strictly set stop-losses, and never hold a position again, even if it rebounds after hitting your stop-loss; generously admit, "I failed this trade," and do not harbor any wishful thinking. Adjust your mindset and continue planning your next trade.
When unrealized profits pull back, and you made a few dollars but ran away, don’t blame yourself. It was a profit, why blame yourself? Be thankful to the market for giving you some pocket money.
In summary, you must always and forever respect the market. You are not a large financial conglomerate; we are retail investors. In this market, they are cats and we are mice. Mice have their own ways to survive. In this market, you must learn to be clever and learn to "steal" a few bites to eat. Eating openly will eventually get you caught by the cats over time. Rest assured, this market is such a large cake, there will always be some leftovers that we can eat.
That said, the so-called path to simplicity is actually very simple reasoning that everyone understands, yet its execution does not meet expectations. Because we are human, we have emotions, desires, loves, hates, greed, and obsessions.
Trading is like fighting against oneself; you must learn to understand yourself, be forgiving of yourself, and supervise yourself...
In the end, trading needs to be simplified, even to the point where it feels like a bit of a "step back." One day, you may feel that technical indicators are useless and stop looking at them. The lines you drew on the chart slowly become fewer, or even disappear. News isn’t something you focus on as much as before, because we are just mice, not eating the big meat, just sipping soup. The news caters to large funds and isn’t that important for us. The key opinion leaders we followed gradually get unfollowed, and communities are slowly abandoned one by one, because they are them, and we are us. The amount of capital varies, trading habits differ, and temperaments vary.
